Online Customer Data

Integration and Management

1. Value of the Online Customer

2. Data Collection / MaaX Integration

3. Applications – Positive and Negative

4. ROI

5. Future

Online Customer

The Changing Media Audience

• Media usage patterns are changing at an accelerating rate

• Newspaper (information) companies have not adapted well to “competition”

• Newspaper web sites have not generated a large audience of their own

• We are confusing consumers about what to expect from our websites

• People are evolving as media consumers

• Advertisers follow the eyeballs

The Changing Media Audience

Everyone is getting into everyone else’s business …

Consumer

• Internet-TV

• iPod

• iPhone

• YouTube.com

• Myspace.com

• Nike gives customers shot at advertising

Fragmentation Continues

• Starbucks selling books and music

• Sears, Circuit City, Macy’s and Amazon added customer-reviews

to help gain new customers and generate more sales

• Sam’s Club gets into the online travel business with Expedia

• Zerox and Kodak blur the lines between photos and copiers

• Lincoln’s newest dealership: Amazon.com

• Ford taps HomeDepot.com for online marketing push

• Lexus unveiling its own branded broadband channel geared toward

consumers in the market for a new car

• Mercedes going where the money is, will create a television real

estate program aimed at high-end housing property, featuring their

autos

• Financial pressure on stores could spell more online retailing

• Online merchants gain ground with personalization and web analytics

Everyone Is Getting Into Everyone Else’s Business …

Estimated U.S. Daily and Sunday Trend

for the last 7 ABC periods Sept. 2003 - 2006 Fas-Fax

• The Industry has taken steady year-over-year declines

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep. 2006

Source: ABC Fas-Fax, Doutsche Bank estimates

Weekday National

Sunday National

Print Circulation

Some Shift to The Web

• Low cost

• Improve access to customers

• Responding to consumer trends

• Proven ROI

Ad Dollars Time

TV 37.4% 32.4%

Radio 9.0% 18.0%

Newspapers 30.0% 7.6%

Magazines 13.0% 5.6%

Cinema 0.4% 3.1%

Digital 5.0% 33.3%

Source: Carat, 10-06

10.9%

18.2%

29.1%

40.0%

1.7%

13.6%

6.8%

42.4%

35.6%

1.9%

0%

10%

20%

30%

40%

50%

The impact of

email is

declining

significantly.

The impact of

email is slowly

declining.

The impact of

email isn't

noticeably

changing.

The impact of

email is

increasing

slowly.

The impact of

email is

increasing

significantly.

B-to-C B-to-B © 2006 MarketingSherpa Inc.

Growing Impact of eMail

Survey of Over 3,600 eMail Marketers

• Advertising • Marketing • Circulation • New Products • Etc.

Multi-channel

Database System Diagram

Data

Sta

ndard

ization

Consumer Target

Consumer Target

Consumer Target

The Sacramento Bee

sacbee.com Direct Mail

sacbee .com

Bee Subs

Vida

Dir Mail

Class PP

MKT

Adv Cust.

AsTECH Data

Warehouse

ASP

Denver

Conduct Data

Analysis

Sacramento

Web - Customer Data Integration

Registration to Access Content

Product Penetration By Age of Head of Householder

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0- 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65+

Direct Mail

Vida only

sacbee Reg. & Vida

sacbee Registrant

Bee Sub & sacbee Reg.

Bee Subscribers

} Bee

Subscribers

Sacbee.com

Registrants }

Audience – Product Penetration by Age

• Using print most are 55+

• Using sacbee.com most are 40 to 54

• Using both print and online most are 45 plus

Web

Registrant e-Newsletters

e-Mail

Web - Variables on Customer Record

Advertising $ales

1. Opt-in to receive local e-Mail offers from 3rd party

2. Banner campaigns targeted at segments (Age, Inc.)

3. Opt-in to receive e-Newsletters

Marketing/Circulation

1. Marketing e-Newsletters:

• Print subscribers

• Print non-subscribers

2. e-Mail billing cycle communications

3. e-Mail special offers for subscriber acquisition

e-Communications

e-Communications in Ad Sales

Total Site Registrants: 835,657

Total Site 3rd Party opt in: 356,863 43%

Sum of SacBee.com Registrants Count of 3rdPart Opt in's

County Total County Total

Other - No Zip 24,806 Other - No Zip 10,457

Out of 4 cnty 470,889 Out of 4 cnty 195,352

Sacramento 245,415 Sacramento 111,382

Placer 49,792 Placer 21,067

Yolo 24,143 Yolo 9,690

El Dorado 20,612 El Dorado 8,915

Grand Total 835,657 Grand Total 356,863

Registered Users by Zip & 3rd party Opt in's Registered Users by Zip & 3rd party Opt in's

Sacramento County Placer County

Zip City Reg Users

3rd Party

Opt In Zip City Reg Users 3rd Party Opt In

94203 Sacramento 60 22 95602 Auburn 1,507 600

94283 Sacramento 10 4 95603 Auburn 2,886 1,168

95608 Carmichael 10,951 4,745 95604 Auburn 300 121

95609 Carmichael 250 102 95631 Foresthill 491 190

95610 Citrus Heights 6,993 3,224 95648 Lincoln 4,721 2,026

95611 Citrus Heights 220 95 95650 Loomis 1,932 848

95615 Courtland 90 41 95658 Newcastle 837 370

95621 Citrus Heights 6,094 2,812 95661 Roseville 5,719 2,354

95624 Elk Grove 9,903 4,664 95663 Penryn 411 165

95626 Elverta 889 421 95677 Rocklin 4,163 1,827

95628 Fair Oaks 8,822 3,809 95678 Roseville 7,152 3,058

95630 Folsom 13,429 5,523 95681 Sheridan 102 42

eMail – Users Willing to Receive Advertiser eMail

• eMail from sacbee.com with specials from local retailers

• popular sales success

• customer/management issue

eMail – Ad Sales Send on Behalf of Advertiser

• sales success

• customer/management issue

Online Visitor Content Interests – Behavioral

All input files containing unique visitors are joined to the

next input file to create the matrix

Business

49,527

Auto

8,602

Entertainment

35,512

Food

8,182

Lifestyle

33,837

Local News

132,796

Politics

61,256

Sports

64,460

Total of 186,133

Unique visitors that we

Know something about

content interests:

• Have eMail and 3rd

party status

• Can ID user when

entering the site

ROS – Targeting Banner Ads at Segment of Users

• Registered User ID’d

• 55+ / Household Income $100,000 +; or 55+ viewing Real Estate

e-Newsletters from The Bee / sacbee.com

eMail – sacbee.com eNewsletters (consumer opt-in)

Newsletter Crosstab - NLTR Level, All Recipients

2/8/2006

Send Frequency W W W W D D W D M-F Misc. W W W D

Newsletter Concert Dining

Family

Fun

Club Jackpot Kings

News

Bulletin Onstage Opinion Politics

Press

Club

Sac

Women Shopping

Sierra

Blast Sports

Concert 31,032

Dining 17,858 24,723

Family Fun Club 16,481 14,045 25,737

Jackpot 7,900 6,618 6,910 12,726

Kings 3,726 3,124 2,837 1,619 17,330

News Bulletin 11,670 9,780 9,080 4,318 9,703 80,115

Onstage 18,545 15,136 16,371 6,889 2,740 8,947 28,871

Opinion 1,459 1,251 1,138 695 1,028 5,559 1,238 7,363

Politics 2,766 2,328 1,965 1,281 2,480 14,546 2,311 4,793 23,145

Press Club 2,002 1,794 1,774 1,101 733 2,501 2,114 190 727 28,529

Sac Women 3,616 3,148 3,295 1,507 1,493 5,925 3,211 1,353 2,360 560 9,083

Shopping 1,730 1,618 1,625 774 530 1,953 1,669 242 447 743 668 7,144

Sierra Blast 4,090 3,390 3,386 2,597 1,756 5,576 3,470 1,144 2,100 795 2,144 564 9,825

Sports 2,544 2,007 1,858 1,181 4,704 7,663 1,783 1,207 2,497 376 1,038 340 1,531 10,888

Taste 5,639 5,829 4,650 1,838 1,953 8,381 4,719 1,533 2,477 429 3,339 947 2,849 1,556

Ticket Stubs 22,982 18,750 19,566 8,047 3,981 12,454 22,834 1,505 2,892 2,774 3,822 2,107 3,853 2,594

Ticketclub Benefits 27,719 22,163 23,175 9,385 4,942 16,078 26,463 1,712 3,612 3,759 4,530 2,137 4,902 3,051

Travel 7,477 6,658 6,217 3,407 2,619 9,005 6,431 1,631 2,958 1,098 3,423 1,133 4,678 2,128

~ Bold: highlighted cells represent the total recipients for that Newsletter. For example, there are 24,723 people who receive the Dining Newsletter

Where Dining and Taste intersect. There are 5,829 people who receive both the Dining and Taste Newsletter.

• Total eNewsletters • Print subscriber • Print non-subscriber views

e-Newsletter Management

e-Newsletter Calendar Management

e-Mail from The Bee to Print Subscribers In-Grace

• Open rate = 36%

• 20% Paid within 7-days of receiving eMail

• 7% Paid from control group that did not receive eMail reminder

e-Mail: Subscriber Reminder to Pay

Sacramento Bee – Weekly eMail (Marketing)

85,000 subscribers

163,000 non-subscribers

As of 2/14/07

Email Product Total Sent

Send %

Change

Since 8/06

Unique

Opens

Open %

Change

Since 8/06

Open Rate

Open Rate %

Change

Since 8/06

Clicks Opt Outs Opt Out %

Subscriber E-Newsletter (2/9) 84,665 -3.42% 10,441 -33.34% 12.33% -30.98% 2,313 226 0.27%

Non-Subscriber E-Newsletter (2/9) 162,938 77.99% 12,031 -1.02% 7.38% -44.39% 2,264 392 0.24%

"Market Minute" -- General (2/8) 280 5.66% 75 -8.54% 26.79% -13.44% 0 2 0.71%

"Market Minute" -- Auto (2/8) 160 -1.84% 48 4.35% 30.00% 6.30% 0 1 0.63%

"Market Minute" -- Real Estate (2/8) 971 5.20% 253 13.96% 26.06% 8.33% 0 2 0.21%

"Market Minute" -- Recruitment (2/8) 96 -3.03% 25 8.70% 26.04% 12.09% 0 0 0.00%

TOTALS 249,110 37.89% 22,873 -18.86% 9.18% -41.16% 4,577 623 0.34%

Grace Payment Reminder (2/7) 866 N/A 294 N/A 33.95% N/A 0 12 1.39%

Circ Subscription Offer (2/7) 106,395 16.22% 6,758 N/A 6.35% N/A 498 415 0.39%

TOTALS 107,261 17.17% 7,052 N/A 6.57% N/A 498 427 0.47%

Jackpot (2/12) 11,814 -8.16% 528 -63.18% 4.47% -59.91% 0 4 0.03%

Kings Newsletter (2/13) 16,340 -11.38% 2,012 -64.11% 12.31% -59.50% 0 2 0.01%

Opinion Newsletter (2/13) 6,724 -15.94% 920 -36.51% 13.68% -24.47% 0 2 0.03%

Politics Newsletter (2/13) 20,962 -12.96% 3,694 -19.85% 17.62% -7.92% 0 5 0.02%

AM Bulletin Newsletter 2/13) 92,411 2.64% 11,969 -28.27% 12.95% -30.12% 0 30 0.03%

Sacramento Women Newsletter (2/7) 8,473 -5.32% 1,261 -18.91% 14.88% -14.35% 0 18 0.21%

SacTicket/Concerts Newsletter (2/8) 29,152 -4.53% 3,699 -31.58% 12.69% -28.33% 0 23 0.08%

SacTicket/Dining Newsletter (2/12) 22,834 -17.99% 2,525 -43.76% 11.06% -31.43% 0 20 0.09%

SacTicket/Family Fun Club (2/12) 22,641 -11.71% 2,184 -45.83% 9.65% -38.65% 0 10 0.04%

SacTicket/On-Stage Newsletter (2/13) 25,876 -11.36% 1,922 -54.24% 7.43% -48.37% 0 18 0.07%

SacTicket/Ticket Stubs (2/8) 38,563 -6.81% 3,710 -41.44% 9.62% -37.16% 0 36 0.09%

Shopping Newsletter (2/7) 6,487 N/A 1,185 N/A 18.27% N/A 0 31 0.48%

Sierra Blast (2/12) 8,415 -10.36% 957 -49.63% 11.37% -43.81% 0 6 0.07%

Sports Newsletter (2/13) 10,377 -11.76% 1,060 -47.32% 10.21% -40.29% 0 3 0.03%

Taste Newsletter (2/7) 13,614 -5.50% 2,117 -33.18% 15.55% -29.29% 0 9 0.07%

Travel Newsletter (2/8) 16,403 -3.20% 2,075 -19.32% 12.65% -16.65% 0 22 0.13%

TOTALS 351,086 -4.97% 41,818 -36.11% 11.91% -32.77% 0 239 0.06%

Marketing Email

Interactive Media Newsletters

Circulation Email

Sacramento Bee – Company Sponsored eCommunications

eMail – B2C Direct Marketing

eMail – B2B eNewsletters

eMail – Our Personal Interest eNewsletters

Summary:

What does this all mean?

Understanding our e-customers and managing

for positive relationships …

There Are Volumes of Information Coming At Us

What are we sending?

Why are we sending?

How often are we sending?

What is the customer reaction to our send?

All important, because without customers we are

out of business …

Customer receiving:

• 3rd Party Opt-in eMail on behalf of advertisers Marketing

eNewsletters from The Bee: Circulation/Marketing

• eNewsletters from The Bee: online user opt-in

• Breaking News alerts from Sacramento Bee Newsroom

Result:

• Making good revenue from eMail sales (big $$$)

• Our open rates are eroding

• Our click-thru rates are eroding

Issue

Result:

• Our ad serving is being blocked on a regular basis by AOL

• We are hitting SPAM Traps higher than acceptable

• 23% of our messages last week were being blocked

• ISP relationships at risk

• Our online reputation is at risk

Blocked last week:

10% Yahoo

15% Hotmail

18% SBCGlobal

19% AOL

83% Frontiernet

100% UC Davis campus

At-risk: Our Online Reputation

• No longer will send eMails to addresses that have not

opened in the past “X” timeframe

• Train staff to understand that it is better to send eMails to a

smaller qualified list (using MaaX), than to the larger total

list

• Likely hire consultant or vendor to manage our growing

online communication process

• Collapse the number of eNewsletters being sent

• Redesign eNewsletters to be more relevant and interactive

for the recipient

Action – Protect and Build Our Online Reputation

What’s Next …

Online Visitor Frequency Analysis

Segmenting Unique Visitors by Frequency

How many are coming in how often?

What are they coming in for?

How can we ensure a positive user experience?

Are we properly managing the e-customer relationship?

] Example of content visitors

by frequency segments

Consumer - Day in the Life of Media/Information Consumption

• Time of day • What channel • For what information • Who • Model DB variable from survey

Must Understand the Consumer Jobs to be Done

Our Need – Powerful Relationship Marketing

Generic Messaging

One and Done Marketing

Solo Communication Channel

Relevant Messaging

Right Time Marketing

Multiple Communication Channels

Center for Media Research

eMail – The Future …

Valuable to integrate …

Use it wisely …

Manage your reputation