1. Creating Relationships:
Recognizing the Value of
Database Marketing
Michael Stich,
Group Director, Strategic Planning

2. Michael Stich – Group Director, Strategic Planning,
Bridge Worldwide
 Currently provides interactive planning to clients. Focus
areas: e-commerce, digital retail, analytics/measurement,
mobile, social media, and relationship marketing.
 Published author and featured speaker: E-commerce, the
Digital Home, Home Networking, the Future of Broadband,
The Asian Internet
 Technology and Telecom Strategy / Marketing background
(Dell, McKinsey, TI)
 B.S. in Computer Engineering from Tufts University and an
M.B.A. with Marketing focus from the MIT Sloan School of
Management.

3. Bridge Worldwide - Key Facts
Staff 290 Digital Professionals
Founded 1979
Awards
Services Strategic Planning, User Experience Planning, Visual Design, Technical
Development, Social Marketing, SEO, CRM, Emerging Platforms,
Account/Project Management
Culture Top 25 Small Companies to work 4 years running
2006, 2007, 2008 & 2009
Cincinnati (HQ) New York
302 West Third Street 498 Seventh Avenue
Suite 900 New York, NY 10018
Cincinnati, OH 45202 Main: 917.224.9573
Main: 513.381.1380

4. Bridge Worldwide – Our Difference

5. Database Marketing:
Why Bother?

6. Consumers have unprecedented choice and control
What I want,
When I want it,
Where I want it,
In the forms I want,
As much or as little,
Filtered by my peers,
Backed by expert opinion,
Without unwanted interruption,
And then I’ll share it with my “friends,”
But don’t you dare tell a soul you know me.

7. Result: Marketers expected to respond –
using data and personalization
• Clients increasing their analytics
resources across marketing and IT
• Data quality control growing more
important
• Resulting Winners: those who know
and focus on data reliability
• Resulting Losers: those who fail in-
market measurement validation

8. Database Marketing:
The Basics

9. What Is Database Marketing?
Database marketing is a form of direct marketing using databases of
consumers or potential consumers to generate personalized communications
to promote a product or service for marketing purposes. Database marketing
emphasizes the use of statistical techniques to develop models of customer
behavior, which are then used to select consumers for communications.

10. But the opportunity is much greater…
Create an ongoing, 1:1 relationship with a
large, diverse population

11. Why Do It? To Create a Relationship
When to Build When Not to
a Database Build a Database
Consumer
Segment Size Large, Heterogeneous Small, Homogeneous
and Diversity
% Online High Low
Database
Potential for Brand Marketing
High Low
Engagement is a way to create
a personalized,
Number of ongoing
Communication Multichannel Single Channel relationship with
Channels a large, diverse
Trial, Loyalty, Consumer Care, population.
Marketing
Increased Usage, Cross-Sell, Mass Awareness
Objectives Line Extensions
Example Multibrand/Scale Promotion Single Brand Promotion

12. Best Practices

13. Database Quality (Over Quantity)
• 80 For 20 Rule Applies
• Budweiser: 1.2% of
buyers = $170/year
• Iams: 1% of buyers =
$93/year
Source: Catalina/CMO Council study of
1,300 brands

14. Brand Collaboration (1+1=3)

15. Segmentation and Targeting:
Potential Ways to Personalize
Behavioral Environment
• New/returning user • IP address
• Clicks • Country / population
• Category affinity • OS / browser
• Purchases • Screen resolution
• Visits
Existing data
Time-based • Analytics
• Time of day • CRM
• Day of week • Demographics
• Season • Psychographics
• Recency
• Frequency
Traffic source
• Organic search
• PPC
• Email
• Direct
• Display / iMedia
• Affiliate

16. Personalization Through Increased Segmentation

17. One Voice Across Touchpoints (By Segment)

18. Watch-Outs

19. Don’t Spam

20. Respect Consumer Privacy

21. Who’s Doing It Well?
Some Case Studies

22. Email Personalized by: As many as 7,000 unique
• Demographics monthly email layouts
• Product codes
entered Research proves that
• Rewards received personalization drives
• Sweepstakes entered engagement.
• Website activity
• Time in program And, engagement drives
sales.

24. Personalized Offers Drive Results
• +100k users in first month, +600k today
• Email open rate of 40%
- vs. 16% industry average
• 34% incremental volume
- People who did not use newspaper coupons
• Targeted emails result in 2x redemption
• Further builds the P&G Everyday Solutions
database
• Kroger enjoys higher share on new P&G items

36. Nike Is Shifting Its Entire Marketing Model
“We’re not in the business of keeping the media companies alive.
We’re in the business of connecting with consumers.”
- Trevor Edwards, VP Global Brand Management
“If we can do something to benefit our consumers and
serve the needs of athletes to perform better, they will
return to our brand.”
- Stefan Olander, Global Director for Brand Connections
“Nike+ has become an indispensible service, giving runners a
continued deep connection to our brand.”
- Michael Tchao, General Manager for Nike Techlab

37. And Experiencing Strong Results
Successfully defending against Adidas/Reebok and Under Armour.
In its first six months, Nike+ helped drive an 8% increase in profit.
CEO Mark Parker promised to grow sales 50% in the next five years.

38. But it’s turning “mass” and
But it’s turning “mass” and “scale” on its head…
“scale” on its head…

40. Emerging Trends in
Database Marketing

41. Consolidation Underway:
Islands Giving Way to Unified Views of the Customer
• Google + AdMob
Demographics,
Life Stage
• Omniture + Adobe Rebate Attitudes &
Sampling Interests
Activity
• Nielsen + facebook + Catalina
Web Site Syndicated
Activity Data
• comScore + Omniture
• New media-planning tools from Promotional Transactional
History Data
audience measurement firms
Media Predictive
• Google measuring across Habits Models
platforms…

42. Benefits of a Unified View
Centralized, all-media view of the consumer
More robust consumer data, the trusted source for targeting
Action-driven system to enable 1:1 communications with consumer
Flexible, real-time, targeted offers/messages delivered at moment
of consideration
Easy access to data and reporting to help marketers make
informed decisions
Scalability without significant increases in cost or resources
Centralized data/list management for maximum cost-efficiency
Analytic “playground” to support testing, scale opportunity
identification, modeling & measurement
SOURCE: TARGETBASE

43. So Where Is This
Headed?

44. Unified Customer Intelligence Raises the Role of Analytics in
Marketing
SOURCE: FORRESTER

45. Brand management will shift focus
TODAY TOMORROW
Hub and spoke Connected nodes
Command and control Listen and respond
Militaristic Cooperative
Mass messaging Two way dialog
Sales in the channel Sales everywhere and integrated
Regional Truly global
Trial and awareness Connection and retention

46. The value equation for database marketing
MEANING RELEVANCY VALUE
To move them
Connect with When, where and
beyond consideration
consumers where how they want to
to purchase and
they are connect with you
advocacy

47. Database Marketing in 2020
• Simplified, natural, universal
access to unified data
• Data structures: from developer-
defined to user-defined
• Data values: from dynamic to
real-time
BUT:
• Increased automation =
increased volatility!

48. Summary
• Consumers Demanding Personalization, Marketers Have The Tools
• Data Can Be Used For Help OR Spam – Be Careful!
• Great Examples: Coke Rewards, P&G eSAVER, Nike +
• The future: More meaningful and relevant experiences, delivered by
more integrated, dynamic and automated database marketing

49. Thank You!
Michael Stich
Group Director of Strategic Planning
Bridge Worldwide, a WPP interactive and relationship marketing agency, was named one of the Top 25 Places to Work in America
in 2006, 2007, 2008 & 2009 by the Great Place to Work Institute.
Bridge Worldwide
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ph 513.618.6788
cell 513.545.2627
fx 513.381.0248
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