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August 2016
Presented to:
PMX Agency Capabilities
Agency Overview
About PMX Agency
3Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Breaking News…Our Deep History of Growth & Innovation
We’ve dedicated our entire agency to our clients’ customers. Everything we stand for – our approach, our investments in technology, data, and analytics, our people
and our culture – has been committed to this singular focus.
This devotion has driven us to create the next chapter in our story – to simplify our brand name so that it may reflect our truest mission and vision. That is why, today, on June 6th our two brands, Paradysz + PM Digital, will officially converge,
into a single agency partner and fully integrated organization, PMX Agency.
4Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
One of the Largest, Independently Owned Global Marketing Agencies
800 25 30+languages spokenofficesemployees
300 9 250 $500Mmanaged mediaofficesemployees clients
USA OFFICES New York, NY Minneapolis, MN Columbia, SC San Francisco, CA
Scottsdale, AZ Boise, ID Freehold, NJ Supporting Locations: Palm Beach, FL Portland, OR
INTERNATIONAL OFFICES China Denmark Finland France Germany Italy Netherlands Norway Spain
Sweden Switzerland UK United Arab Emirates USA
5Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
An Integrated, Performance-Driven Agency
We see an integrated world where conversations converge, creating a range of opportunities for us to hone in on the highest moments of intent across the complex customer journey. We are committed to diving deeper in order to discover the unique combination of solutions to our clients’ most significant business challenges.
PERFORMANCE MANAGEMENT RESEARCH & DATA INSIGHTSDATA SERVICES & MARKETING TECHNOLOGY
CREATIVE, BRANDING, OPTIMIZATION
PAID SEARCH SEO & CONTENT
DISPLAY & PAID SOCIAL SOCIAL &
WEBSITE DEVELOPMENT EMAIL DIRECT MAIL PRINT &
INSERT
STRATEGY & ANALYTICS
Engage Convert
RetainGrow
6Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Working With Leading Brands That Scale
We are committed not only to uncovering the data, or interpreting insights from trends; but to diving deeper in order to discover the unique combination of solutions to our clients’ most significant business challenges.
7Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
26 Years Serving Nonprofit Organizations
8Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Our Industry Awards
50 Fastest Growing CompaniesCrain's New York; 2012
Marketing Agency of the Year, Stevie Awards - Bronze; 2012
Fastest Growing Private Companies Inc. 5000; 2013
Top US Agencies Advertising Age's; 2014
Best In Class: Search The North Face,
Sportsman’s Guide,& Simply Be
eTail; 2012, 2014, 2015
Top Search Engine Agency Internet Retailer; 2010 - 2014
Corporate Commitment AwardMarketing Edge; 2014
Finalist: The North Face Digiday; 2015
Outstanding Achievement: KPMG IMA; 2015
Excellence in Marketing & Communications: AHA
Communicator Awards; 2016
W I NNI NG CL I E NT S
9Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Best-in-Class Service & Technology Partners• Deep roots in direct marketing, with direct response, and cross channel integration at the core• Unique optimization approach that is supported with talent and technology investments• Top-level service with critical media providers• Technology agnostic approach to provide the most appropriate solutions
10Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Thought Leadership: Annual Trend Reports, Whitepapers, Blogs & Videos, Webinars
• Vertical & Seasonal Reports: • Luxury Brand Online• Beauty Market Study• Mature Market• Holiday• Back-to-School
• Seasonal Calendars• Blogs & Videos• Creative Spaces• Webinars
11Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Planning & Communication: MarketRelevance
MarketRelevance is a client-exclusive portal that provides access to a combination of performance data, competitive intelligence, and collaborative tools specifically-tailored to your business that will enable us to jointly inform and influence business strategy.• Performance Reports• Competitive Intelligence• Online• Offline• Collaboration Tools• Document Sharing• Email Tracking• Thought Leadership
Understanding Your Customers + Moments-In-Time
Our Solutions Approach
13Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Your Customers:We Begin by Uncovering Customer Data & TrendsAt PMX Agency, we are driven by an insatiable curiosity to solve the problem and get to the right solution – this is the path to the unique solution that delivers scalable performance for each and every client.
• Market & Competitive Audit• Customer Analysis
• Audience Identification & Targeting
• Segmentation• The Right Solution Mix• Test Framework
• Offer to Audience• Media Sourcing & Planning• Database Marketing• Campaign Launch
• Campaign Management• KPI Dashboard Reporting• Testing & Optimization
Diagnostics Strategy Execution Optimizationwhy
?
how
?
wha
t?
14Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Your Customers: Uncovering High-Value Customers through Research, Data, & Insights
Our Solution Mix to Building Customer ProfilesWe overlay demographic, lifestyle, and behavior intelligence onto a prospect database to identify distinct audience profiles & segmentation models.
This analysis and outcome feeds the development of our comprehensive contact strategy where we determine the most effective integrated solution channels.
Prospect Profile (Data Providers)
Segment Model
Constituents / Prospect (Client Data)
15Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Reaching Your Customers with the Right Solutions
We use analytics to develop custom contact strategy plans based on behavioral segmentation rather than internal silos and definitions. This enables the most effective messaging to each individual on file for maximum performance using a variety of communication methods.
Reporting & Analytics
Constituent Analytics& Data Mart
TVPrint
Radio
CC
Direct Mail
Display
Search
Social
Mobile
WebsiteEvent
List Growth
Personalized Contact StrategySegmentation Models
Solution Channels
Optimization
16Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Innovation & Strategy:Our Always-On and Moments-in-Time Methodology
Our team leverages their insights to your business and knowledge of the industry to implement an “Always-On” + “Moments-In-Time” approach that will ensure success and competitive differentiation.
RESEARCH, DATA, & INSIGHTSPERFORMANCE MANAGEMENT
Seasonal Support
Conversation Triggers
Brand & Product Focus
Category & Top Funnel Initiatives
INNOVATION & STRATEGY
ALWAYS-ON MOMENTS-IN-TIME
17Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Innovation & Strategy:Consumers Don't Think by Channels, They Live by ExperiencesWe set our sights on the spark that inspires a consumer to act. We are committed to not only to uncovering the data and developing strategies from insights and trends, but to diving deeper in order to discover the unique combination of solutions that touch the customer at every point of their journey. We implement new ideas that combine technology, creativity, know-how, and dynamic thinking to ensure our clients’ messages are the ones that resonate.
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.
CAPITALIZE ON SEASONAL MARKET TRENDSmaintain consistent communication that drives conversion
WINTER / SPRING SPRING / SUMMER SUMMER / FALL FALL / WINTER
Direct Mail
Our Solutions
19Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Direct Mail:Best Practices in an Integrated EnvironmentDirect Mail has a unique opportunity to be a successful standalone channel for many clients, but it can also be an incredible augmentation tactic to drive increased performance for other channels in an integrated environment.
SEM Social/Content
Display
SEO Direct Mail
The PMX Agency Direct Mail Solution Benefits:
Increased Program Efficiency and Performance
Integrated Marketing Program – All Channels
available to the Consumer
Unbiased Channel Budgeting/Allocation
20Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Segmentation & Analytic Opportunities• Identify best targets to be contacted
regardless of channel/integrated contact strategy
• Increased focus on integrated performance and attribution
Direct Mail:Best Practices in an Integrated Environment
SEM Social/Content
Display
SEO Direct Mail
Creative Considerations• Consistent messaging by Channel• Uniformed branding• Cost efficiency
Dedicated focus on Creative, Segmentation, and Attribution is a key to any successful integrated environment
21Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
PMX Agency’s 3-Step Approach to Acquisition Direct Mail
We source the optimal mix of acquisition media including:
1. Custom Modeled Record Selection2. Exchange Lists/Segments3. Rental Lists/Segments4. Cooperative List/Segments
Our prospect database transforms list marketing to Audience Marketing by segmenting prospects by predictive behavior instead of their list source.
Our direct mail experts leverage the prospect database tools to create the best offer-to-audience and record suppression opportunities within the prospect environment. • Who are the best audiences?• What offers do they prefer?
1 2 1IMPROVED
MEDIA
2 3ENHANCED TARGETING
AUDIENCE STRATEGY
22Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Direct Mail:Our Methodical Full Scale Direct Mail ModelAs your agency partner, PMX Agency provides full service, end-to-end Direct Mail services including:• Strategic Business Planning: Develop and manage the overall
process and schedule, including communication, budgeting, testing, production schedules, execution, and optimization
• Customer Targeting: Identify optimum customer segments and third party sources to receive relevant promotions, including test designs and frameworks, data processing and procurement and post-mail analytics
• Omni-Channel Marketing Considerations & Segmentation: Manage omni-channel contacts and how these communications impact performance. Determine which channels in combination produce increased performance.
• Creative Development: Offer full-service creative, including production, design, and copy in accordance with branding and messaging guidelines
• Print Production: Manage the entire print production process, including print bidding, print process management, proofing, press attendance, freight management, invoice management, postal delivery optimization and postal regulation management
• Performance Measurement: Develop & deliver custom-architected reporting solutions, commonly across multiple channels with drill-downs by time, geo, product & device dimensions
Strategic Business Planning
Customer Targeting
Omni-Channel Marketing
Considerations &
Segmentation
Creative
Print Production
Performance Measurement
Supported by Direct Mail Strategist with
Omni-Channel Experience
23Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Segmentation & Analytic Opportunities:Understanding Customer Targeting & SegmentationWho Are Your Best Customers? What is their Profile? PMX Agency uses custom scoring algorithms to determine your best customers. This analysis feeds customer segmentation and prospect audience targeting in multiple channels.
Customer Segments % of Customers Avg Gross Sales Avg Purchase Frequency Avg Time on File
VIPs 5% $766 9.5 4.1 Yrs
Up and Coming 20% $275 3.5 2.8 Yrs
Transactional 15% $124 1.6 2.3 Yrs
Low Value 60% $54 1.1 1.9 Yrs
Total 100% $144 2.1 2.2 Yrs
24Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Segmentation & Analytic Opportunities:Development of Contact Strategy ModelWe use analytics to develop custom contact strategy plans based on behavioral segmentation rather than internal silos and definitions. This enables the most effective messaging to each individual on file for maximum performance using a variety of communication methods.
Reporting & Analytics
Constituent Analytics& Data Mart
TVPrint
Radio
CC
Direct Mail
Display
Search
Social
Mobile
WebsiteEvent
List Growth
Personalized Contact StrategyData & Behavioral Segmentation Models
PMX Agency Solution Channels
Optimization
VIP Customer
Replenish Customer
Transactional Customer
Low Value Customer
25Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Segmentation & Analytic Opportunities:Test Background ExampleExample of Testing for Client A:A recent client wanted to determine how direct mail helped to support/augment current email marketing strategies. In this example a test was created for both active and inactive customers to determine if adding a Direct mail contact in addition to the current email contact would help increase sales and reactivation efforts.
In this case new creative and print production were incorporated into the test.
Direct Mail & Email (New Creative)
Email Only (New Creative)
Email Only (Control Creative)
Test Structure:
The three segments above were created for the active and inactive segments for two different product line to determine how an additional contact via email impacted performance.
26Copyright © 2016 PMX Agency (formerly Paradysz + PM Digital). All rights reserved. This information is deemed proprietary and confidential. Unauthorized use or disclosure is prohibited.
Performance Management:Features of Our Omni-Channel Dashboards
Performance to Plan
Multichannel
Campaign Segmentation
Time Dimensionality
Constituent Segmentation
Scalable API Integration
Geographic Dimensionality
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3
4
4
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PMX Universe Solution (USOL) – What is it?
The PMX Universe Solution (USOL is a High-Performing Prospect Name Solution. The PMX/Epsilon partnership brings together PMX’s data mining and program management expertise with Epsilon’s best in class data and modeling - the most comprehensive in the industry.
Performance – Cost Effective – Scalable
PMX Universe Solution (USOL) – A Measured Approach to Acquisition
All lists are evaluated and will continue to be evaluated on which Performance Tier of the Program they fall into.• Tier 1: Best Performance• Tier 2: Mid Level Performance• Tier 3: Low Performance
As we move from the current environment, there will be a purposeful disregard for volume in Tier 3 as it is slowly replaced with better names from Tier 1 and less expensive, better performing names sourced from Universe Solution.
PMX media evaluation determines best list sources for expansion. Targeting lower ranked lists for replacement by Universe Solution, allows clients to realize immediate performance gains and list cost savings while minimizing program risk.
Tiered Source Evaluation:
*As Tier 2 and Tier 3 volumes decline, USOL volume is added to
meet 100% of the desired mail volume.
Tier 3 Lists33%
Tier 2 Lists33%
Tier 1 Lists33%
USOL35%
Tier 2 Lists20%
Tier 1 Lists45%
Current List Mix
Future List Mix
Maximize High Response &
Minimize Low Response
PMX Universe Solution (USOL) – Better Targeting on Input
With USOL we are able to target a better prospect audience
Gift – Goal is to bring in as many prospects that score in the High Gift tier of the Rev Opt model, while minimizing the % of names coming from the Low Gift tiers.
Response – Comparing the response scores for all outside list rentals vs. USOL we have historically seen a much more responsive prospecting pool coming from the USOL Fulfilment.
LTV – By optimizing the prospecting audience (response & gift) we are able to maintain current response rates while improving the overall gift resulting in an overall improvement to the program LTV.
Target Audience – We can also leverage the Revenue optimization tool to Target specific audiences based on client goals. Example; donors to specific packages (Gift Catalog or Non Premium offers), as well as High Gift, Younger, or Ethnic donors.
With our Revenue Optimization tool we are able to identify the value of prospects coming into the merge at the individual level. In addition to offer to audience insight we are also able to better understand the value of each source as it relates to the prospecting pool. We use these insights to better target the prospecting pool through USOL.
High Score Low Score 0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
USOL (Response) Prospect Lists (Response)
PMX Universe Solution (USOL) – Campaign Application
Objectives –The goal of USOL is to source overlapping prospect names more cost effectively as well as provide new incremental names to the acquisition program that perform equal to or better than current options.
Methodology – USOL is a joint collaboration between PMX and Epsilon based on Epsilon’s Modeling methodology and PMX’s Audience Targeting capabilities. Multiple custom linear regression models are developed as the solution set applied across Epsilon’s broad portfolio of databases – Abacus, TotalSource Plus, and TargetSource. The provided USOL output for this test will be fulfilled net of the current house file and any merge suppression to ensure efficiency through a clean net output.
Full Solution
Test Depth: 10%
Test Depth: 60%
Test Depth: 30%
Test Segmentation – Segmentation is set up with initial testing in a way that allows us to see what the impact would be if we expanded out to replace various depths of the current prospecting circulation (10%, 30%, & 60%)
Post Campaign Analysis - The Solution Optimization is a backend (post-mailing) analysis that validates and compares the Universe Solution potential relative to the current multisource solution and illustrates potential performance, cost, and coverage program impacts.
PMX Universe Solution (USOL) – Recommendations & Impact
♦ PMX Universe Solution (USOL) recommendations• Recommend introducing the solution in ongoing campaigns with simultaneous program
management. Doing so not only helps expedite the established test, retest, rollout DM strategy but also minimizes risk associated with traditional list testing.
• Reallocate quantity that was traditionally set aside for list testing, to the Universe Solution (contingent on program, generally 10-15% of Mail volume) for ongoing campaigns.o By doing this we will minimize risk associated with traditional list testing (10% success
rate) by replacing that volume with a custom modeled name source that is based on your own mail & responder data and has been proven effective across the PMX client portfolio.
• In partnership with Epsilon, PMX will provide recommendations on how big to build the solution, which models will be incorporated within the solution, and appropriate testing breakouts/depths to maximize program impact and rollout potential.
• PMX to review current merge suppression strategy to ensure that USOL is fulfilled net of current house and other suppression files. USOL and Abacus segments are fulfilled net of each other to help minimize the added cost of high duplication in the merge.
• Once the initial test campaign has finalized we will work in conjunction with Epsilon to perform a solution optimization (backend analysis) and provide recommendations on how to maximize program impact while making adjustments to the solution to ensure strong in-the-mail performance.
• Once control solution is established we can focus on expanding or refining our Target Audience using a combination of Epsilon and PMX optimization tools.
0% 100%
► PMX USOL Impact ◄The illustrations below show
anticipated impact across key metrics due to implementation of these
recommendations
Response Impact
0% -100%
-5%-15%
List Cost Decrease
0% 100%
Universe Impact
• actual results may vary• assumes implementation of recommended strategies
+10%-20%
+10%-15%
Topline Trending
Y-O-Y Single Gift Acquisition Performance
* Excludes House Volume
Trending – Single Gift Acquisition Performance
Observations Seasonal volume investments Fairly consistent mail volumes YOY Improved list CPM due to Abacus Top vs. Bottom Lists by PL have a $10 to $30 gap in
PL/Donor 25% gap in response from bottom PL lists vs. overall
plan Fundraising efficiencies could further improve
investment and help buoy response and gift levels
Proposed Solutions Improved segmentation and targeting utilizing
PMX USOL List consolidation and optimization Better list terms through negotiation Optimized offer to audience selection Suppress Low audience segments using
Revenue Optimization
Y-O-Y Catalog Acquisition Performance
* Excludes House Volume
Trending – Catalog Acquisition Performance
Observations Concerted investments in Holiday timeframes Abacus a key driver in reducing PL/Donor for
2015 While gifts are consistent across Top & Bottom
PL/Donor lists, there is a 30% gap between the campaign baseline and Bottom lists in response
A fantastic base of sources and volume on which to grow for FY16
Proposed Solutions Improved segmentation and targeting utilizing
PMX USOL List consolidation and optimization Better list terms through negotiation Optimized offer to audience selection
Acquisition In-DepthList Review
Category Analysis- Single Gift (FY14 vs. FY15)
*Excludes house & rolls together all subjects outside of Coops due to small volumes and/or lack of YOY trends due to testing and build-out**Charity/Non-Profit=Cooperative Databases
Category Analysis- Single Gift (FY14 vs. FY15)
*Excludes house & rolls together all subjects outside of Coops due to small volumes and/or lack of YOY trends due to testing and build-out**Charity/Non-Profit=Cooperative Databases***General= Multibuyers
Observations Coops drive overall program performance based on
volumes mailed and are incredibly consistent in all metrics over time
Multibuyers (General above) moved from being 11% of total mailed volume in FY14 to 22% in FY15. Response fatigue
Humantarian sourced names are a consistent source for SAVE. PL improved as a result of greatly reducing List CPMs for these sources ($61 in FY14 to $31 in FY15)
Health Medical sources had fairly consistent YOY response and gifts but a greater divide in PL not driven by List CPM
Proposed Solutions Review multi-buyer creation and treatment to
see if we can improve response Review Health Medical sources to understand
optimal mix to improve PL Better list terms through negotiation Optimize plans with sources to drive
incremental universe at reduced costs; in some cases consolidating sources
Identify potential source for creating multis that fuels interaction with the coops at net/net prices
Category Analysis- Catalog (FY14 vs. FY15)
Cooperative Database names represented 77% of FY14 Catalog
volume and 84% of FY15 volume; the primary source being Abacus.
Increased volume was met with stronger response; driving increases in Rev/M.
Other Observations Multibuyers perform at 20% above the FY average
in response but at just slightly lower average gifts than FY averages
Identify potential source for creating multis that fuels interaction with the coops at net/net prices
Difficulty finding viable sources beyond Coops. Focus on source growth at viable PLs will be critical
Category Analysis
• Single Gift- Coops & Humanitarian sources are holding strong in all metrics and have been between 64-67% of total volume mailed YOY. Multibuyers (22% of FY15 volume) are showing response fatigue. Relative flat performance YOY on all metrics
• Catalog-Coops drive overall program performance including increases in response and Rev/M for the Catalog program. Lack of diversity and need for growth
Key Findings
• Single Gift- Opportunities to consolidate and/or reduce price on weaker categories such as Health Medical. More efficient multibuyer generation and cadence strategies are a key target as well
• Catalog- Source expansion with Universe Solution and Optimization of other sources will be critical
Opportunities
• Single Gift- Multibuyer response degradation disconcerting as is volatile PLs in FY15 for all non-coop sources
• Catalog- Lack of diversity of non-Coop sources and inability to get non-donor lists to work
Weaknesses
Top 10 Analysis- Single Gift Acquisition- Mail Volume
Rank List Name FY14FY14 % Comp FY15
FY15 % Comp
% Variance FY14 FY15
% Variance FY14 FY15
% Variance FY14 FY15
% Variance
1 ABACUS NON PROFIT 788,450 37% 844,912 43% 7% 0.82% 0.73% -10.63% $31.72 $28.52 -10% ($43.88) ($55.54) -27%2 MULTIBUYERS 265,862 13% 432,382 22% 63% 1.19% 0.89% -25.76% $24.54 $24.91 1% ($36.01) ($46.25) -28%3 WILAND DIRECT NONPROFIT/FR/DONOR DATABASE 141,329 7% 90,661 5% -36% 0.81% 1.04% 28.26% $27.86 $26.66 -4% ($40.52) ($21.61) 47%4 FEEDING AMERICA 61,727 3% 59,640 3% -3% 0.91% 0.86% -5.49% $19.33 $18.83 -3% ($49.14) ($40.86) 17%5 HABITAT FOR HUMANITY, INT'L 10,707 1% 58,519 3% 447% 0.88% 0.80% -8.32% $19.49 $15.22 -22% ($34.71) ($36.43) -5%6 CHILDREN'S HUNGER RELIEF FUND 50,434 2% 40,430 2% -20% 0.76% 0.80% 4.98% $17.49 $16.73 -4% ($65.10) ($57.08) 12%7 CARE USA DONORS 49,720 2% 40,140 2% -19% 0.90% 0.94% 4.66% $22.55 $22.39 -1% ($34.67) ($28.33) 18%8 NATIONAL FOUNDATION FOR CANCER RESEARCH 107,564 5% 38,298 2% -64% 0.66% 0.67% 0.70% $15.39 $17.31 12% ($86.49) ($101.74) -18%9 MACULAR DEGENERATION RESEARCH 9,168 0% 29,295 1% 220% 0.69% 0.46% -33.44% $17.52 $20.84 19% ($51.35) ($111.88) -118%10 WONDERWORK 11,465 1% 27,568 1% 140% 0.99% 0.96% -2.84% $14.75 $19.34 31% ($24.44) ($37.21) -52%
1,496,426 70% 1,661,845 84% 11% 0.88% 0.80% -8.97% $27.20 $25.56 -6% ($49.84) ($49.55) 1%2,123,164 1,971,512 0.77% $25.26 ($53.12)
PL/ Donor
Top 10 by Mail Volume- FY15Grand Total- All FY15 Outside Lists
Mail Volume Response Rate Average Gift
Rank List NameFY15 Mail Quantity
% of FY15 Total
FY15 PL/ Donor
FY14 List CPM
FY15 List CPM
YOY List CPM Variance
Subject/ Category
1 ABACUS NON PROFIT 844,912 43% ($55.54) $59.38 $55.58 ($3.80) Coops2 MULTIBUYERS 432,382 22% ($46.25) $0.00 $0.00 $0.00 Multibuyers3 WILAND DIRECT NONPROFIT/FR/DONOR DATABASE 90,661 5% ($21.61) $81.12 $76.04 ($5.08) Coops4 FEEDING AMERICA 59,640 3% ($40.86) $99.29 $11.66 ($87.63) Humanitarian5 HABITAT FOR HUMANITY, INT'L 58,519 3% ($36.43) $100.63 $11.00 ($89.63) Humanitarian6 CHILDREN'S HUNGER RELIEF FUND 40,430 2% ($57.08) $65.39 $59.02 ($6.37) Humanitarian7 CARE USA DONORS 40,140 2% ($28.33) $11.00 $56.34 $45.34 Humanitarian8 NATIONAL FOUNDATION FOR CANCER RESEARCH 38,298 2% ($101.74) $85.19 $87.23 $2.04 Health Medical9 MACULAR DEGENERATION RESEARCH 29,295 1% ($111.88) $98.08 $54.65 ($43.43) Health Medical10 WONDERWORK 27,568 1% ($37.21) $11.00 $11.00 ($0.00) Humanitarian
1,661,845 84% ($49.55) $53.14 $39.17 ($13.97)1,971,512 ($53.12) $60.97 $40.64 ($20.33)
Top 10 by Mail Volume- FY15Grand Total- All FY15 Outside Lists
Top 10 Analysis- Catalog Acquisition- Mail Volume
List Name Mail Qty% of Total PL/Donor
FY14 List CPM
FY15 List CPM
YOY List CPM
VarianceSubject
CategoryABACUS NON PROFIT 293,058 66.04% ($21.88) $55.74 $55.27 ($0.46) Coops
WILAND DIRECT NONPROFIT/FR/DONOR DB 73,495 16.56% ($121.08) $79.50 $60.97 ($18.53) CoopsMULTIBUYERS 37,668 8.49% $11.63 $0.00 $0.00 $0.00 Multibuyers
FINCA 27,570 6.21% ($71.34) $95.00 $61.67 ($33.33) HumanitarianHEARTHSONG 6,000 1.35% ($1,540.04) $74.94 $74.94 Childrens Merch
HELPING HANDS CHARITABLE DONORS 6,000 1.35% ($752.53) $78.68 $78.68 DatabaseGrand Total 443,791 ($37.42) $52.50
List Name FY14 FY15 % Variance FY14 FY15 % Variance FY14 FY15 % Variance FY14 FY15 % VarianceABACUS NON PROFIT 199,855 293,058 47% 0.24% 0.46% 90% $132.77 $121.53 -8% -$60.67 -$21.88 64%WILAND DIRECT NONPROFIT DATABASE 15,551 73,495 373% 0.17% 0.29% 65% $91.30 $118.41 30% -$180.65 -$121.08 33%Grand Total 215,406 366,553 70% 0.22% 0.42% 94% $119.86 $117.09 -2% -$95.12 -$37.99 60%
Mail Qty Resp% Avg Gift PL/Donor
Top Volume Findings
• Single Gift- Top 10 lists by Mail Volume comprise 84% of the total mailed in the FY. The source composition is not significantly different YOY although the reliance on these sources has grown. • 6 of 10 lists have decreased RR% or Average Gifts but only 3 had decreases in gift and RR%
• Catalog- 83% of catalog volume is driven by two sources: Wiland and Abacus. PL improvements as a result of these sources.
Key Findings
• Single Gift- Optimize offer rotation, contact management, and revenue optimization. Consolidate 2nd tier sources with less expensive, more powerful sources with greater efficiency. This applies to Multibuyers and Outside sources.
• Catalog-Source expansion and optimization of current households via reuse, revenue and/or audience optimization, and potential offline/online communication.
Opportunities
• Single Gift- Abacus has helped buoy response and gifts over time and is likely a reason why overall RR% and Gifts have not seen large declines. However, the composition (or, better yet, management of the households using solutions above) should be reviewed. • Multibuyer creation, treatment, and cadence should be reviewed
• Catalog-Lack of diversification in sources and/or successful testing in previous years beyond coops.
Weaknesses
Top 10 Analysis Single Gift- PL/Donor
Rank List Name Mail Qty% of Total PL/Donor
FY14 List CPM
FY15 List CPM
YOY Variance
Subject Category
1 TECHNOSERVE 575 0% ($1.31) $11 $10.98 ($0.02) Humanitarian2 MERCY CORPS 6,537 0% ($15.66) $11 $17.55 $6.55 Humanitarian3 WOMEN FOR WOMEN INTERNATIONAL 4,291 0% ($21.02) $11 $10.99 ($0.01) Humanitarian4 WILAND DIRECT NONPROFIT DB 90,661 5% ($21.61) $11 $76.04 $64.62 Coops5 CARE USA DONORS 40,140 2% ($28.33) $11 $56.34 $45.34 Humanitarian6 OXFAM AMERICA 3,242 0% ($33.72) $81 $19.01 ($62.10) Humanitarian7 HELEN KELLER INTERNATIONAL 506 0% ($34.06) $11 $92.78 $81.78 Health Medical8 INTERNATIONAL RESCUE COMMITTEE 2,697 0% ($34.67) $11 $10.99 ($0.01) Humanitarian9 HABITAT FOR HUMANITY, INT'L 58,519 3% ($36.43) $11.00 $11.00 Humanitarian10 WONDERWORK 27,568 1% ($37.21) $101 $11.00 ($89.63) Humanitarian
234,736 12% ($27.76) $54.21 $44.34 ($9.87)1,971,512 ($53.12) $60.97 $40.64 ($20.33)
Top 10 by PL/Donor- FY15Grand Total- All FY15 Outside Lists
Rank List Name FY14 FY15%
Variance FY14 FY15%
Variance FY14 FY15%
Variance FY14 FY15%
Variance1 TECHNOSERVE 437 575 32% 1.60% 1.22% -24% $56.43 $42.86 -32% $13.26 ($1.31) -110%2 MERCY CORPS 4,959 6,537 32% 1.15% 1.09% -6% $23.51 $22.01 -7% ($10.09) ($15.66) -55%3 WOMEN FOR WOMEN INTERNATIONAL 26,521 4,291 -84% 1.18% 0.98% -17% $26.81 $21.45 -25% ($12.38) ($21.02) -70%4 WILAND DIRECT NONPROFIT DB 141,329 90,661 -36% 0.81% 1.04% 28% $27.86 $26.66 -4% ($40.52) ($21.61) 47%5 CARE USA DONORS 49,720 40,140 -19% 0.90% 0.94% 5% $22.55 $22.39 -1% ($34.67) ($28.33) 18%6 OXFAM AMERICA 0 3,242 0.71% $35.00 ($33.72)7 HELEN KELLER INTERNATIONAL 1,081 506 -53% 0.93% 1.58% 71% $22.60 $16.63 -36% ($60.90) ($34.06) 44%8 INTERNATIONAL RESCUE COMMITTEE 12,461 2,697 -78% 0.74% 0.93% 26% $25.01 $20.48 -22% ($40.62) ($34.67) 15%9 HABITAT FOR HUMANITY, INT'L 10,707 58,519 447% 0.88% 0.80% -8% $19.49 $15.22 -28% ($34.71) ($36.43) -5%10 WONDERWORK 11,465 27,568 140% 0.99% 0.96% -3% $14.75 $19.34 24% ($24.44) ($37.21) -52%
258,680 234,736 -9% 0.88% 0.95% 8% $25.53 $22.45 -14% ($33.65) ($27.76) 18%2,123,164 1,971,512 -7% 0.80% 0.77% -4% $25.55 $25.46 0% ($49.84) ($53.12) -7%
Mail Quantity Response Average Gift PL/Donor
Top 10 by PL/Donor- FY15Grand Total- All FY15 Outside Lists
List Cost Savings
List Cost Comparison 2015 Oct Campaign
Projected List Cost Savings
Assumptions:*Excludes Wiland **43% net rate out of merge (excludes Wiland volume)**Assumes no current net name arrangements****Annualized savings estimates would be realized over 12 month period (assuming monthly mailing cadence)
The October 2015 campaign was reviewed in-depth down to the list/segment level to identify list negotiation opportunities. Leveraging long-standing relationships throughout the industry,
Paradysz projects the list cost savings impact below to your program (see detail list-level figures in appendix).
Savings: Estimated single campaign savings of $50,000 estimated annualized savings of $600,000.
**Savings are on base rates and improved net name arrangements only, select negotiations could result in additional savings. Actual savings can vary based on investment level, list mix, rental/exchange ratio, etc.
Est Current Net Overall Net Arrangment Net Gap0%
10%20%30%40%50%60%70%80%
43%
75%
32%
Current Net Gap
Est Current Net Overall Net Arrangment Net Gap0%
10%
20%
30%
40%
50%
60%
70%
43%
60%
17%
Paradysz Net Gap
This slide should reflect prior slide data
List Cost Specifics
This slide should reflect data on slide 68
• Apogee• Assn/Mature American Citizens• AICR• DonorBase• Seniors w/ Traditional Values
Net Gap Opportunities
• American Big & Tall Apparel Buyers• Artistic Direct Corporate MF• Donor Source Charitable Contributors• Friends/Smithsonian• Action Network Transaction Database
Base Price Opportunities
• Donorosity- Masterfile• American Big & Tall Apparel Buyers• Seniors with Traditional Values• Veterans of Foreign Wars• AICR Health Cause Contributors
Largest Savings Files
USOL – What is it?
The Universe Solution is a High-Performing Prospect Name Solution. The PMX/Epsilon partnership brings together PMX’s data mining and program management expertise with Epsilon’s best in class data and modeling - the most comprehensive in the industry.
Performance – Cost Effective – Scalable
USOL – A Measured Approach to Acquisition
All lists are evaluated and will continue to be evaluated on which Performance Tier of the Program they fall into.• Tier 1: Best Performance• Tier 2: Mid Level Performance• Tier 3: Low Performance
As we move from the current environment, there will be a purposeful disregard for volume in Tier 3 as it is slowly replaced with better names from Tier 1 and less expensive, better performing names sourced from Universe Solution.
PMX media evaluation determines best list sources for expansion. Targeting lower ranked lists for replacement by Universe Solution, allows clients to realize immediate performance gains and list cost savings while minimizing program risk.
Tiered Source Evaluation:
*As Tier 2 and Tier 3 volumes decline, USOL volume is added to
meet 100% of the desired mail volume.
Tier 3 Lists33%
Tier 2 Lists33%
Tier 1 Lists33%
USOL35%
Tier 2 Lists20%
Tier 1 Lists45%
Current List Mix
Future List Mix
USOL – Better Targeting on Input
High Score Low Score 0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%Input File Score
USOL (Gift) Prospect Lists (Gift) USOL (Response) Prospect Lists (Response)
Minimize Low
Response &
Value Pool
With USOL we are able to target a better prospect audience
Gift – Goal is to bring in as many prospects that score in the High Gift tier of the Rev Opt model, while minimizing the % of names coming from the Low Gift tiers.
Response – Comparing the response scores for all outside list rentals vs. USOL we have historically seen a much more responsive prospecting pool coming from the USOL Fulfilment.
LTV – By optimizing the prospecting audience (response & gift) we are able to maintain current response rates while improving the overall gift resulting in an overall improvement to the program LTV.
Target Audience – We can also leverage the Revenue optimization tool to Target specific audiences based on client goals. Example; donors to specific packages (Gift Catalog or Non Premium offers), as well as High Gift, Younger, or Ethnic donors.
With our Revenue Optimization tool we are able to identify the value of prospects coming into the merge at the individual level. In addition to offer to audience insight we are also able to better understand the value of each source as it relates to the prospecting pool. We use these insights to better target the prospecting pool through USOL.
Maximize High
Response &
Value Pool
USOL – Campaign Application
Objectives –The goal of USOL is to source overlapping prospect names more cost effectively as well as provide new incremental names to the acquisition program that perform equal to or better than current options.
Methodology – USOL is a joint collaboration between PMX and Epsilon based on Epsilon’s Modeling methodology and PMX’s Audience Targeting capabilities. Multiple custom linear regression models are developed as the solution set applied across Epsilon’s broad portfolio of databases – Abacus, TotalSource Plus, and TargetSource. The provided USOL output for this test will be fulfilled net of the current house file and any merge suppression to ensure efficiency through a clean net output.
Full Solution
Test Depth: 10%
Test Depth: 60%
Test Depth: 30%
Test Segmentation – Segmentation is set up with initial testing in a way that allows us to see what the impact would be if we expanded out to replace various depths of the current prospecting circulation (10%, 30%, & 60%)
Post Campaign Analysis - The Solution Optimization is a backend (post-mailing) analysis that validates and compares the Universe Solution potential relative to the current multisource solution and illustrates potential performance, cost, and coverage program impacts.
USOL – Recommendations & Next Steps
♦ PMX Universe Solution (USOL) recommendations• Recommend introducing the solution in ongoing campaigns with simultaneous program management. Doing so not only
helps expedite the established test, retest, rollout DM strategy but also minimizes risk associated with traditional list testing.
• Reallocate quantity that was traditionally set aside for list testing, to the Universe Solution (contingent on program, generally 10-15% of Mail volume) for ongoing campaigns.o By doing this we will minimize risk associated with traditional list testing (10% success rate) by replacing that volume
with a custom modeled name source that is based on your own mail & responder data and has been proven effective across the PMX client portfolio.
• In partnership with Epsilon, PMX will provide recommendations on how big to build the solution, which models will be incorporated within the solution, and appropriate testing breakouts/depths to maximize program impact and rollout potential.
• PMX to review current merge suppression strategy to ensure that USOL is fulfilled net of current house and other suppression files. Also, all USOL and Abacus segments are fulfilled net of each other to help minimize the added cost of high duplication in the merge.
• Once the initial test campaign has finalized we will work in conjunction with Epsilon to perform a solution optimization (backend analysis) and provide recommendations how to maximize program impact while making adjustments to the solution to ensure strong in the mail performance.
• Our goal is to establish a strong performing, and cost effective solution that acts as the foundation for a full optimized program. Once we establish this foundation we can focus on expanding or refining our Target Audience through a combination of our partnership with Epsilon and PMX’s optimization tools.
Competitive Intelligence
Additional Names YoY % Growth
Boys Town Donors 72,474 12%St. Joseph's Indian School Donors 53,748 7%Mercy Corps 10,172 27%American Indian Relief Council Donors 9,805 17%St. Labre Indian School Donors 7,158 2%
4Q 2015 Housefile Universe
St. Joseph's Indian School Donors 821,807Boys Town Donors 695,651Marine Toys for Tots 364,891Habitat For Humanity, Int'l 334,128St. Labre Indian School Donors 331,244
Added info from 2015 but unsure if we should keep or where it should be placed.
Competitive Intelligence
10%
19%
21%27%
23%Significant GrowthModerate GrowthNo ChangeModerate DeclineSignificant Decline
Added info from 2015 but unsure if we should keep or where it should be placed.
2015
2014
2013
0% 100%
12%
8%
9%
23%
17%
21%
18%
25%
22%
7%
14%
11%
22%
13%
16%
15%
17%
14%
4%
7%
8%
< $9.99 $10-$14.99 $15-$19.99 $20-$24.99$25-$29.99 $30-$49.99 $50+
Ask Ladder Analysis/Lowest Ask Amount – 2015
YoY Change in Individual Housefiles – 2015
Case Studies
Our Solutions
Amazon Solution Mix:CreativeDirect MailWeb DevelopmentMergeAdvisory Services
We proposed a direct mail program for Amazon as an innovative way to re-activate and engage customers across a spectrum of product lines. By developing a robust test and learn approach, we were able to investigate the viability and impact of a traditional channel on ecommerce purchases. We initiated an end-to-end solution that was quickly implemented and fully managed on behalf of the client and built a scientific testing environment to identify strongest customer segments, creative concepts and formats. Our methodical, end-to-end approach to testing and implementing direct mail for retention purposes proved that a traditional channel can have significant impacts on ecommerce programs.
95%Increase in new signups compared to the Control
>$.42Drove incremental sales
within the specific product lines & across the entire site.
100% Lift in streaming over
the Control and 35% lift in device linking
For each direct mail piece, the most cost effective
solution to date
Amazon Solution Mix:CreativeDirect MailWeb DevelopmentMergeAdvisory Services
As a trusted partner, our team manages the testing, planning, execution, and measurement of key direct mail campaigns from start to finish. Our goal is to provide a seamless and effective way to engage, activate, and retain Amazon customers across Amazon - PIV, Amazon Fashion, Amazon Prime, MyHabit, Amazon Industrial Supply, Amazon Secure Card Reader, Kindle and more.
Crayola Solution Mix:CreativeDirect Mail
We designed and developed an initiative to engage and excite kids in an interactive way to build their Crayola holiday wish list while reinforcing the benefits of Crayola creativity products. We managed all elements from Strategy through Deployment and Testing. • Quantities Mailed: 300,000 (Acquisition: 183K,
House: 117K) • Testing: 2 coupons on each catalog, 1 for in-store
purchases, 1 for online purchases. • In Home Date: Nov 3-6
HP Solution Mix:CreativeWeb Development
HP engaged PMX Agency to review it’s Home Office, SMB, Personal Devices, Security, and Government independent web experiences and associated eCommerce Stores. After optimizing and enhancing the interfaces, customer journeys and purchase paths, we embarked on a comprehensive usability study over an extended period. The results and findings led to the launch of a persona-based, customer-enhanced HP.com that incorporated all of the independent experiences as one segmented experience and shopping environment, not independent websites.
HP Solution Mix:CreativeWeb Development
HP World e-InclusionOur mission is to close the gap between the technology-empowered communities and the technology-excluded communities on our planet by making it profitable to do so. In concert with other innovative HP efforts such as Digital Villages and e-government, e-inclusion is determined to invent new solutions that will increase revenues for HP’s current lines of business while promoting development in emerging markets.
AARP Solution Mix:StrategyPrint & InsertCreativeEmailDisplay
PMX Agency evolved the AARP brand perception by offering added value that increased the engagement levels of a multi-generational, actively maturing population. By optimizing direct mail, we lifted conversion rates which established new controls. • Outperformed former control creative by 10%
and 18%.• Delivered value and strong branded approach
with relevant offer.
18%Outperformed former control creative by 10%&
Thrivent Financial Solution Mix:Build awareness and generate additional policies through an integrated program. Optimized direct mail lifting conversion establishing new controls:• Original ask to revitalize “fatigued” efforts• Outperform 4 former control creatives
significantly• Deliver simple package approach
American Express Solution Mix:PMX Agency created the American Express brand for their Giving Express Program – a charitable initiative to donate rewards points to charities. The team created this sub-brand to appeal to the hearts of cardholders who otherwise wouldn't think of Amex as a charity-minded organization.
Feeding America Solution Mix:CreativeWebsite DevelopmentDirect MailSocial Media
Feeding America, the nonprofit organization with more than 200 food banks, will feed more than 46 million people through food pantries, soup kitchens, shelters, and other community-based agencies. As the nonprofit industry continues struggling with identifying new donors, this group was focused on finding a partner that would be able to generate additional brand awareness and increase online lead generation and conversions through an integrated program across email, website optimization and creative.
PMX Agency was selected to develop a comprehensive program leveraging our data-centric approach to defining marketable audience segments, building communication strategies to test and optimize, and improving conversion to make accelerate engagement through donations and leads. The team managed an integrated program with subject matter experts in analytics/testing, audience modeling/segmentation, creative, and email marketing services to deliver ongoing strategic recommendations and tactical production of marketing assets.
Feeding America Solution Mix:CreativeWebsite DevelopmentDirect MailSocial Media
Test Hypothesis:• Can we increase engagement with the donation
form by moving the CTA to a more prominent position above the fold?
CTA Above the Fold Results:• Moving CTA above fold increased clicks to
Donation form by 91%
Champion Challenger
Feeding America Solution Mix:CreativeWebsite DevelopmentDirect MailSocial Media
Test Hypothesis:• Can we increase giving by making the donation form
array more visually prominent, and adding context/benefit around giving tiers?
Visual Enhancement & Context Results:• Total donation volume up 20% for challenger form• Average individual donation amount up 30%
Champion
Challenger
Feeding America Solution Mix:CreativeWebsite DevelopmentDirect MailSocial Media
Test Hypothesis:• Could making the “Global Donate” button more prominent
increase clicks to donation form and grow revenue?• CTA was changed from “Donate” to “Donate Now” with icon
CTA Button Prominence Results:• Clicks on new Donate button increased 10% • Donation revenue 23% higher from new Donate Now button
Champion
Challenger
pmxagency.comThank You!