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All Customers Are Not Created Equal… : 

All Customers Are Not Created Equal… Carolyn Corda, VP Professional Services Bob Adams, CTC, Industry Strategist

Acxiom / Vistrio Partnership : 

Acxiom / Vistrio Partnership Vistrio was formed to make industry-wide data available to help travel providers navigate new marketing challenges Acxiom in partnership with Vistrio, along with Sabre, as charter member and joint founder, have created combined data, analytics and technology solutions. These solutions will allow travel and entertainment organizations to enhance the customer experience and implement high-impact relevant marketing programs based upon individual customer preferences and value.

Who’s Acxiom: 

Who’s Acxiom Customer & Information Management Leader Customer Data Integration Customer Data Managed Databases Consulting & Analytics Privacy Leadership IT Outsourcing Multi-Channel Marketing Risk Mitigation Core attributes Industry-focused “ConneXtion” to client value High-volume complex solutions Gold standard client service Technology leadership Global presence

Acxiom Innovation: 

Acxiom Innovation First to offer complete suite of anti-phishing solutions (2005) First to integrate search with e-mail marketing (2004) First to exceed 95% enhancement match rate (2003) First grid-enabled customer information infrastructure (2003) First to offer comprehensive deliverability & anti-spam solutions (2003) First household-level cluster segmentation (2001) First real-time Customer Data Integration (CDI) (1998) First marketing relational database system (1989) First multi-sourced data enhancement database (1984) First marketing database (1978) * All logos listed herein are the property of their respective owners. 2005 2004

Acxiom Services − : 

Acxiom Services − 12 of the top 15 credit card issuers 9 of the top 10 automotive clients 9 of the top 10 top telecomm / media companies overall 7 of the top 10 retail companies 7 of the top 10 retail banking companies 7 of the top 10 top property / casualty insurance providers 6 of the top 8 top brokerage firms 3 of the top 5 top pharmaceutical manufacturing companies 2 of the top 5 U.S. rankings of life / health insurance providers After only two years of focus in the Travel Industry: 2 of the top 3 cruise lines 2 of the top 3 gaming companies 2 of the top 3 lodging companies 1 of the top 4 airlines 2 of the top 4 vacation ownership companies * As of 2/1/07

Today, companies tend to use frequency as the means for both valuing and distinguishing customers.: 

Today, companies tend to use frequency as the means for both valuing and distinguishing customers. Customer value is generally calculated based on frequency and spend. Many marketing programs vary offers, creative and channels based on loyalty tier. The customer experience itself is often determined by loyalty level—service priority, amenities, waived fees. The result… faceless cash flows $$$ $$ $

Since not even all platinum customers are created equal, there are some drawbacks to this approach.: 

Since not even all platinum customers are created equal, there are some drawbacks to this approach. Loyalty tier can be misleading in terms of potential spend, and genuine loyalty. There are significant variations in customer value within a loyalty tier. Factors such as trip occasion are much more relevant than loyalty tier in designing promotions. Values, preferences and needs don’t necessarily align with loyalty tier. $$$

The goal is to evolve from one-dimensional tiers to multi-dimensional portraits.: 

The goal is to evolve from one-dimensional tiers to multi-dimensional portraits. Travel behavior with you and other suppliers Other discretionary spending Attitudes Interests and lifestyle Demographics

Achieving this level of differentiation is challenging...: 

Achieving this level of differentiation is challenging... Data collection Customer recognition Data storage and access Inertia Operationally focused Lack of database marketing skills Training/incentives to value and apply data Insufficient and inconsistent measurements Conflicting priorities Resource limitations Bias towards action reduces Numerous operational silos …and yields great rewards.

Surmounting these challenges requires actionable customer insights : 

Surmounting these challenges requires actionable customer insights Likelihood to fly, stay, rent, cruise by date, and dollar spend Self-reported hobbies and interests Contact information for over 120 million households comprised of 186 million individuals Includes age, income, education, & travel related information Member specific online shopping data & travel information inquiries (used for member specific applications only) Household life-stage segmentation socio-economic, and household characteristics Known Travel Behaviors (Bookings and transactions), Response Behavior (by channel, by segment, by offer type) Enables Answers to Key Questions: Ready to Act Where Who When How What Household discretionary spending capacity Baseline 55:1 268:1 Most Predictive Power Ratio 7:1 196:1 Breadth of Data InfoBase® Acquisition InfoBase® Enhancement Data Personicx™ Segmentation Propensities Discretionary Spend Lifestyles Vistrio Behaviors In Market A multi-dimensional database composed of over 125 MM US households with demo- and socio-graphic data on over 185MM individuals and travel behavior on 11MM individuals One of the most accurate and comprehensive sources of travel behavioral data available Allows travel marketers to take action on customer insights

InfoBase Data – foundation of the pyramid: 

InfoBase Data – foundation of the pyramid Personal data Household data Real property data Purchase behavior data High-Tech data Wealth indicators InfoBase trends Vehicle data Area level data Lifestyle data Geographical data Segmentation data

The ability to aggregate the many sources of consumer data is enabled by AbiliTec® Consumer Linking and KnowledgeBase travel linking tables: 

The ability to aggregate the many sources of consumer data is enabled by AbiliTec® Consumer Linking and KnowledgeBase travel linking tables leverages the ability to bring similar and dissimilar data together travel linking tables utilize transaction data to identify individuals equips CRM solutions with the ability to create a single, comprehensive view of the individual customer

Why is Household Data Critical? : 

Why is Household Data Critical? Every year in the U.S… 1.5 million new addresses are created 1 in 6 people move (40 million) 1 in 5 movers (8 million) leave no new address 1 in 100 people get married (4.7 million) 1 in 200 people are divorced (1.9 million) 1 in 115 people die

Customer Segmentation – Personicx®: 

Three Next-Door Neighbors – Three Different Life Stages Same ZIP + 4®, Block Group, Tract and ZIP® Different households with different Personicx Life Stage Clusters Customer Segmentation – Personicx® A household-level segmentation system driven by InfoBase® household data *The following trademarks are owned by the United States Postal Service®: ZIP® and ZIP + 4®. Taking Hold: Cluster 18 Beginnings: Cluster 39 Aging Upscale: Cluster 23 

Behavioral Data – Best Predictor of Future Activity: 

Behavioral Data – Best Predictor of Future Activity Low High Value Continuum Descriptive Predictive Behaviors include consumer purchases by specific product, category, dollar amount, channel, offer type, and date. Sourced from actual customer transactions and aggregated from numerous contributors By far the most important predictor of future action InfoBase® Acquisition InfoBase® Enhancement Data Personicx™ Segmentation Propensities Discretionary Spend Lifestyles Vistrio Behaviors In Market

This behavioral data is based on travel transactions that are contributed from a number of sources.: 

This behavioral data is based on travel transactions that are contributed from a number of sources. Transactions Sources: As of March 21, 2007

Detailed data supports in-depth analysis: 

Detailed data supports in-depth analysis

By applying insights from these data, companies are more effectively differentiating customer value as well as treatment.: 

By applying insights from these data, companies are more effectively differentiating customer value as well as treatment. Wallet-Share and Customer Valuation Customer Profiling and Acquisition Brand Positioning and Merchandising

A comprehensive perspective on wallet-share provides a means to categorize each customer’s potential value.: 

Total Annual Spend $0 0% 100% Loyalty Prospects $2,500 Money Trees: High current value Money Saplings: Good conversion opportunity Golden Acorns: Strong growth potential Money Shrub: Potential to increase spend per stay Crab Grass Limited potential A comprehensive perspective on wallet-share provides a means to categorize each customer’s potential value.

The Number Of Individuals, Current Spend And “Available Spend” Are Quantified To Identify The Best Growth And Profit Opportunities: 

The Number Of Individuals, Current Spend And “Available Spend” Are Quantified To Identify The Best Growth And Profit Opportunities Annual Spend Maintain loyalty and harvest “Money Trees” Increase loyalty with “Money Saplings” through focus and innovation Expand offering value to “Money Shrubs” Limit investment in “Crab Grass” Acquire “Golden Acorns” through selective cultivation

“Crab Grass” demonstrates distinctly different characteristics compared to “Golden Acorns” with respect to travel.: 

The Acorns are less likely to be leisure travelers Slightly more hotel stays and hotel spend More trips and more spend Golden Acorns Crab Grass “Crab Grass” demonstrates distinctly different characteristics compared to “Golden Acorns” with respect to travel.

…But not for demographics: 

The “Grass” and “Acorns” are demographically similar …But not for demographics Golden Acorns Crab Grass Golden Acorns Crab Grass

The mechanism for defining targets – Look alike models of best customers for CRM and acquisition: 

National Consumer Database The mechanism for defining targets – Look alike models of best customers for CRM and acquisition Top rank(s) of individuals identified by model List Extract Model and List Data Sources Company Customer File

Which Media?: 

Which Media?

Which Amenities?: 

Which Amenities?

What Program?: 

What Program? Fall in love with the Westin Indulge Your Passions Experience. Your Indulge Experience includes: Champagne and strawberries for two Breakfast in bed Complimentary newspaper Offer: Upgrade Creative: Skyboxes & Suburbans Channel: E-mail Partner: Outdoor Activity

What Geography?: 

What Geography?

Integrated Multi-Channel Marketing Delivery: 

Integrated Multi-Channel Marketing Delivery Which Channels? Offer Delivery Channels Direct Mail Digital Marketing Intelligent Call Center Interaction Intelligent Interactive

Direct Services – Postal Marketing: 

Direct Services – Postal Marketing

Digital Services -: 

Digital Services -

Case Study -In A Recent Acquisition Campaign, Utilizing More Predictive Travel Behavior Delivered These Results: 

Case Study - In A Recent Acquisition Campaign, Utilizing More Predictive Travel Behavior Delivered These Results $63,150,000 Gross Margin $5,600,000 Total Mailing Cost $1.00 Cost per piece mailed $600,000 Total Cost of Names $120 Cost per Acquisition Name (in Thousands) $68,750,000 Total Revenue 275 Revenue per guest (avg 2.2 nights/$125 ADR) 250,000 Number of Responses 5% Response Rate 5,000,000 Number of Prospect Contacts   Precision Turned Into Programs

Results – Value Delivered: 

Results – Value Delivered Hospitality Client - Past guests - 3.6% response rate, $12,481,045 incremental revenue Best Customers $9,856,134 Reactivated Customer $704,322 Migrated Customers $1,920,589 Gaming Client - Responders almost doubled. Bookings were 1.55 times greater than the year before, actually increasing by nearly 40%. Total revenue for campaign was nearly 2X greater than the year before.

Thank You!: 

Thank You! Carolyn Corda, VP Professional Services Bob Adams, CTC, Industry Strategist