Targeted Marketing Case Studies

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Copyright 2010, Confidential Property of handshake Marketing · www.handshakemarketing.com · 516-767-9394

handshake Case Studies

Behaviorally defined targets proven to reduce acquisition cost…

PGE CA (Avg CPU = $26.94)
Client
High CPU/ No
Below Avg CPU
Units
Total # of ZIPs 442 594
TV Spend $172,805.27 $291,354.80
News Spend $287,653.15 $404,492.45
Total Spend $460,458.42 $695,847.25
Total Units 28,977 13,950 % Improvement
Avg CPU $15.89 $49.88 314%
Total HHs 2,229,802 3,181,676
Core "Key" HHs 696,694 624,494
Extended "Key" HHs 909,425 976,251
Core "Key" % Penetration 31.24% 19.63%
Extended "Key" % Penetration 40.79% 30.68%
Higher Target Concentrations Lower Target Concentrations
Lower Cost Per Unit Higher Cost Per Unit

► Markets with higher concentrations of brand behavioral targets performed
at 314% lower cost per unit sold than markets with lower target
concentrations.

Copyright 2010, Confidential Property of handshake Marketing · www.handshakemarketing.com · 516-767-9394 2


Behaviorally defined targets proven to increase potential…
Behaviors define/drive what your consumer target does…
demos express what your targets are like:
Major Consumer Financial Services Brand

In “Key” In behavioral In Demo but not
behavioral Target Target and in in behavioral
but not in Demo Demo Target

Underserved Sweet Spot Waste



Case Study: Behavioral targeting for micro market success

► Business Challenge: An East Coast automotive dealership had been #9 in sales ranking
among about a dozen other dealerships in the area and was having trouble meeting monthly
sales objectives. The client contracted handshake to improve its sales performance.
► Solution: handshake created a behavioral target for the dealership’s automotive brands and
helped the dealer execute a direct mail campaign against this target.

Before "Key" Campaign June 2001 "Key" Campaign

May Sales % of June Sales % of Prior Period
Dealership
Saturn Of: Sales Objective Objective Sales Objective Objective Over/Under
Fredericksburg 25 28 89% 51 29 176% +87 pts
Roanoke Valley 46 40 115% 41 40 103% -13 pts
Woodbridge 52 47 111% 51 49 104% -7 pts
Manassas 28 30 93% 35 32 109% +16 pts
Lynchburg 19 17 112% 17 19 89% -22 pts
Bowie 58 75 77% 97 81 120% +42 pts
Winchester 33 35 94% 33 37 89% -5 pts
Sterling 42 46 91% 43 47 91% 0 pts
Alexandria 44 50 88% 47 51 92% +4 pts
Waldorf 24 30 80% 24 31 77% -3 pts
Fairfax 44 53 83% 40 54 74% -9 pts
Marlow Heights 15 28 54% 21 29 72% +19 pts

► Results: After using handshake’s behavioral targeting approach, the dealer achieved the #1
sales rank position (the first time in its history) and outperformed its sales objective by 76%

Testimonial: dealership General Manager: “handshake has demonstrated to me the ability to
identify, define and reach consumers most likely to drive [brand] sales volumes in my trading
area.”


Case Study: Targeted direct mail drove high volumes of online leads

► Business Challenge: A Hispanic entertainment content provider contracted handshake to drive
website registration (membership sign-ups) via a targeted bilingual direct mail campaign.
► Solution: handshake developed Hispanic behavioral targets to be aligned with both the client’s
offerings and heavy online involvement. Support included target messaging profiles and direct
mail list.
► Results:
Campaign vs. Best Class Registration Rate
► Response and registration on the
website during this campaign 16.15%
18%
was extraordinarily high, with 16%
6,461 registrations over the 14%

course of the campaign. 12%

10%
► The mailed-to-registration 8%
5.00%
conversion rate was 16.15% 6%

(6,461 of 40K mailed). 4%

2%

► For comparison, the average 0%
2007 Campaign "Best In Class"
rate of users completing an Mailed-to- Website
Registration Rate Registration/Lead
option/free registration Generation Rate
online has been reported to
be 2-3%, with 5% being best
in class. This campaign
performed over 3X better ► Learning: Targeted correctly, direct mail can be
than best of class. a highly successful on line lead generation
tactic.



Case Study: Mass media drove awareness, direct drove response

► Business Challenge: Strategic marketing support was needed for a multicultural campaign
targeting consumers with healthy eating messages via multiple media types.
► Solution: handshake provided behavioral targeting, message strategy inputs, and direct mail
lists, linking the client’s goals/messages to the target’s preferences and behaviors.

1000

BRC
900
Phone
Web
Totals
800

700
DM hits
home

Responses by Week
600

500

400

300

200

100

(D = drop) D D D D

0

9/3
6/4

7/2
7/9

8/6
6/18

7/16
7/23

8/27
5/21
5/28

6/11

6/25

7/30

8/13
8/20
► Results: Response to media
was very low until targeted
direct-to-home was ► Learning: While mass media provides a critical layer of
introduced. awareness, direct-to-home, coupled with target profiling,
can significantly increase response/action to messages.



Case Study: Targets can be tailored to product-specific sales needs

► Business Challenge: A concert venue wanted to be able to reach consumers with a season
offering based on sales priorities for that season. Specifically, the client wanted an emphasis
on consumer targets that would increase ticket sales for acts that do not automatically “sell
out”.
► Solution: handshake provided marketing support for each season, including behavioral
target mail lists of concertgoers who would be attracted to the particular planned acts for
each season.
► Results:
► Many acts were pre-sold-out from the first wave of marketing alone (1,750 seat venue)
► Over 72,000 concert ticket transactions from the 2002-2007 mail efforts.

Average campaign cost Targets were
per ticket sold: customized
$3.21 according to
Average revenue per each
marketing dollar spent: season’s
$16.54 booked act
sales needs

► Learning: Reaching targets based on their preferences provides marketers the ability to
prioritize expenditures so they are in sync with sales goals.



Case Study: Integrate online/off line for “across the board” gains

► Business Challenge: A wireless cell phone provider needed to drive leads and sales for its
product in a highly competitive marketplace, improve results from prior period marketing efforts,
and prove sales viability to the board of directors.
► Solution: handshake developed the “key” behavioral target for the client’s specific products,
taking into consideration the product features/benefits, competitive market and consumer needs.
Also provided were campaign planning and execution support for the marketing test campaign,
which included advertising via banner ads, contextual web advertising, search marketing,
targeted email and direct mail.
► Results: As compared to prior period efforts, client realized a 56% increase in unique visit rates
and 42% increase in sales. Direct mail yielded a 7% response rate and email click through
rates were 8% (versus 2-6% U.S. average)

Unique Visitors by Week: Before and After Behavioral Target Campaign

47000
Kajeet Store/Phones Visitors: Unique Pageviews by week

42000
DM in-home
5/7-5/13
37000 …………………………………………>

* Email Blast 1:
32000 5/6…………………………………>
* Email Blast 2: 5/13
…………………….>

27000 SEM
Banner ads
start
---------------------5/9 to 6/30 ----
s: 5/1
22000
1/5 1/19 2/2 2/16 3/1 3/15 3/29 4/12 4/26 5/10 5/24 6/7

► Learning: Integrated off line and online campaign tactics that are behaviorally targeted can
deliver significant lift as compared to non-targeted efforts.


Case Study: Efficiency lifted when store distribution was “spotty”

► Business Challenge: A consumer wireless device product was distributed in over 3,000 stores
nationwide (187 out of 210 DMAs) but not fully distributed in all chains. This resulted in some
stores carrying the product and others not within the same markets, and hence significant
inefficiencies when advertising at the DMA level.
► Solution: handshake mapped concentrations of behavioral targets around each store and
provided direct to home (email/mail) lists so that buyer traffic could be directed to stores that
carried the product.
► Results: By concentrating
marketing efforts in areas
with the highest presence
of behavioral target and
retail stores, the client
achieved a 62% increase
in response and also
greatly improved
efficiencies.

The black markets had highest volume of
behavioral target households, while the
color dots represented the retail locations.

► Learning: Markets with the largest populations were not necessarily the best markets to go to.
Prioritize markets based on both high availability (store presence) and demand (target
presence) for maximum and immediate impact on sales.



Case Study: Localized targets outperformed national targets

► Business Challenge: A high-end consumer home furnishings retailer was experiencing
below-expectation results from its traditional mailings. They desired a more advanced direct
mail list targeting solution to improve results, as well as refined local market media
strategies to better motivate household targets to purchase.
► Solution: handshake profiled existing local market customer records along with surveyed
customers of competitor stores to find the right blend of household segments to include in
local mailings, as opposed to a national definition. Local “Key” target profiles were also
provided to help the client get into the mindset of the potential customer base and shape all
types of sales communications and local efforts.

► Results over several efforts:
► 53% incremental increase in total purchases
► 71% incremental increase in gross receipts from local behavioral targets.
► Acquisition targets purchased 44% more than repeat customers.
► $2.06 for every dollar spent increased to $3.88 with optimization.
► Learning: Correctly defined and localized target definitions can dramatically improve
success from local marketing expenditures and sales volume levels.



Case Study: Performance guarantee campaign results

► Business Challenge: Acquisition and upgrade campaigns for cable operators and programmers
typically result in 0.4% to 1.5% order rates, depending on the offer. In this cable operator and
programmer effort, there were multiple subscriber services, types of targets and markets
involved. handshake guaranteed performance at rates that were roughly 2X historical averages.
► Solution: Custom behavioral targets for seven U.S. regions, targets profiling, and inputs to
support message, offer and direct mail versioning. handshake developed a marketing database
for the client, with all the targeting selects of customers and non-customers.
Guarantee Gulf Coast Los Angeles Mid-South Northwest
Product Rate Actual % Lift Actual % Lift Actual % Lift Actual % Lift
Video Acquisition 2.30% 3.30% +43.48% 2.44% +6.09% 5.70% +147.83% 3.51% +52.61%
Digital Acquisition 1.30% 2.53% +94.62% 2.54% +95.38% 3.75% 188.46% 2.69% +106.92%
Digital Upgrade 2.30% 3.27% +42.17% 7.10% +208.7% 3.14% +36.52% 5.00% +117.39%

HSD 0.90% 2.02% +124.44% 1.37% +52.22% 1.90% +111.11% 2.17% +141.11%

Guarantee Northeast Nevada Southeast TOTAL
Product Rate Actual % Lift Actual % Lift Actual % Lift Actual % Lift
Video Acquisition 2.30% 6.29% +173.48% 3.10% +34.78% 3.56% +54.78% 3.54% +53.91%
Digital Acquisition 1.30% 3.96% +204.62% 2.43% +86.92% 2.06% +58.46% 2.72% +109.23%
Digital Upgrade 2.30% 5.53% +140.43% 3.41% +48.26% 5.35% +132.61% 4.52% +96.52%

HSD 0.90% 2.79% +210% 0.97% +7.78% 1.70% +88.89% 1.82% +102.22%

► Order Results Above Performance Guarantee: +53.91% higher for Cable Basic service,
+109.23% for Digital Acquisition, +96.52% for Digital Upgrade and +102.22% for High Speed
Data. A total of 70,267 campaign target/mail list match subscribers.
► Learning: The approach of segmenting messages/offers based on regionally defined
behavioral targets paid significant dividends and was also scaleable to a national program
level.


Case Study: Sales presentation makeover pays off

► Business Challenge: A manufacturer of digital entertainment content systems for use within
retail establishments was having a difficult time getting sales leads to convert into serious leads
using its current set of sales presentations.
► Solution: handshake worked closely with the client to develop a sales presentation strategy
and “wish list” of proof point topics that sales execs believed would have the most impact.
From there, handshake developed a resource that included behavioral targets, target profiles
across entertainment/shopping preferences, and market research to uncover facts that
supported various claims such as “in store entertainment services has been proven to increase
store purchase levels.” Draft presentation materials woven around existing product slides were
prepared and the presentation flow/copy was refined until the client was satisfied with the result.

► Results: The draft presentations were field tested with actual retail chain prospects and the
feedback was that the new treatment was exactly what was needed to better understand and
evaluate the proposition. The incorporation of these new materials had an immediate and
positive impact on business development results, including shortening the length of time to
close deals.
► Learning: Most sales execs already know what it takes to close a deal, they just need to be
provided with what is needed. While it takes some time and resources to bring sales
presentations to that next level of prospect relevance/strong proof points – the investment can
be an integral part of getting an account to become interested, remain engaged, and ultimately
Testimonial:the order.
give you Steve Birrell, SVP/General Manager: “The business development presentation strategies and
supporting data provided by handshake enhanced our credibility in terms of how our prospective accounts
perceived us and how they valued what we brought to the table. Ultimately it has shortened the length of time
between initial interest and proposal requests. When presented to our existing and potential restaurant/retail
accounts handshake's market data validates critical selling points."



Case Study: The killer application for affiliate sales

► Business Challenge: A major cable networks client owned thousands of pages of research and
millions of dollars of licensed data but needed a way to pull it all together into one usable
resource that would support quality and market-specific affiliate presentations. Client needed to
be able to prove that their value far exceeded their fees.
► Solution: handshake developed an easy to use presentation creator application, the handshake
Library, that integrated all the research, data and presentation slide assets into one resource. All
of the information was organized around key strategic sales points and translated into “cool
slide” treatments, and competitive networks data was also incorporated so comparisons could
be presented. The users’ desktop interface allows for “click of a mouse button” functionality so
that anyone could use the application.

► Results: The Library desktop application reduced the time
involved for presentation development and resulted in
significantly better meeting decks/meeting results. Many
resources that were previously not being utilized were now
all fully employed so that the affiliate sales team could
customize presentations for any relevant topic or market
area.
► Learning: There is often a disconnect between the
enormous value that research offers and presentation deck
content. Focusing on the best of the best of all the
resources while having immediate access to all information
assets enabled the sales team to dramatically improve the
quality of presentations and meeting outcomes.



Case Study: Capital investment opportunity evaluation

► Business Challenge: A venture capital firm was giving Sales Potential*: Launch/Rollout Consumer “Key” Target HHs:
“Reception Markets” DMAs Only DATA NOT ACTUAL

serious consideration to funding a start-up technology

:: Venture Property: Business Concept Evaluation ::
There are an estimated 2,500,000 Venture Property – Best of the Best -
“Key”^ households within the 18 Launch Signal Markets

service that would allow consumers to create their own
television content packages. Due to the competitive nature
of the industry, the VC firm wanted to be able to make the
most informed decision.

Sources: handshake Marketing, SMRB, Claritas
► Solution: handshake developed a prototype target
definition of consumers most likely to adopt the service,
quantified the market potential within the service launch * = totals reduced by 30% to account for estimated 70% signal coverage by market
^ = in “Key” and own TV and have HSD (cable modem/DSL/ISDN/Satellite) and Enhanced Revenue Content (PPV 1+ past 12 months or have/used

markets, profiled the target across marketing behaviors,
VOD or have DVR or own HDTV or watch streaming video past 30 days) and “Channel Control” Psychographics (agree: cable has too many channels
or agree: growth in number of cable networks is diluting the quality of TV or disagree: like the idea of large selection of TV channels)

©2007, Confidential Property of handshake Marketing 10

and related all findings into a “marketing and business plan
risk score card.” Business plan results were also Reforecast Table B: handshake reforecast

► Results: The consumer opportunity was sizable and the
reforecasted accordingly. • Reforecast applies adjusted cost of acquired customer calculation and limits

:: Venture Property: Business Concept Evaluation ::
penetration from partners by how much they will realistically spend of total

brand viable, but handshake’s analysis determined that revenues for Venture Property campaigns.

forecasted revenues significantly exceeded what was 2008 - 2011
Gross Revenue
Venture
$ 188,862,729
hsM Reforecast
$ 46,566,163

realistic, relative to projected marketing budgets and Direct
Partner
$ 70,944,855
$ 134,689,913
$
$
19,746,809
26,819,354

adoption rates. These insights allowed the VC firm to Net Subs
Direct
Partner
932,555
74,900
857,655
329,342
39,654
289,688

better evaluate the opportunity. Expense
Marketing
$
$
92,000,000
22,735,000
$
$
92,000,000
22,735,000
Operations $ 69,265,000 $ 69,265,000

► Learning: Validating the marketing/sales hypothesis Cost Per Customer
Direct
Net Revenue
$
$
$ 96,862,729
99
304
$
$
$
(45,433,837)
279
696

behind forecasted revenues can be critical to guiding
investment decisions. The same resources that can deliver ©2007, Confidential Property of handshake Marketing 30

successful marketing results can be used significantly for
making most types of capital investment decisions.
Testimonial: VantagePoint Venture Partners: “The end evaluation product from handshake far exceeded our
expectations in terms of analysis/insights and helped to inform our investment process.”



Case Study: Footsteps analysis leads to record-setting retail success

► Business Challenge: A health supplement manufacturer had some success at selling its brand
directly to consumers but wanted to expand into grocery, specialty chains and drug retail. Retail
chain buyers, however, were skeptical since the supplement category was already overcrowded.
► Solution: In order to define who the future consumer buyer of this product was, handshake
profiled the client’s direct purchaser consumers along with households with other important
behaviors such as retail shopping. The target definition was then quantified within all U.S.
markets and trading areas for a few major grocery chains, and the target further profiled across
all the different types of products that the grocery retailers offered. In addition to the target
definition and sales opportunity quantification detail, the chain store buyer presentation offered a
visual of the retailer’s floor plan that showed the target’s purchase propensity for each store
section. Finally, the presentation showed how likely the supplement buyer target was to shop at
the retailer’s competitors and thus help the retailer grow market share.
Retail Opportunity: Footsteps

Departments & “Key” Shopping “Footsteps”
► Results: The client’s first presentation to the target Home
Sports
Toys Bed & Bath

grocer resulted in an immediate order and sales were Seasonal/Patio & Window Coverings
Luggage
Garden

Books

successful because the product itself was so Home
Kitchen
Auto

Hardware /
Music

Instruments
DVDs
TVs

exceptional. The brand expanded its distribution to Home
Home Shoes Improve-
Baby ment
Appliances

many other grocery, vitamin, drug chains, becoming House-
wares
Furniture
Pets
Men
Kids
Specialty
Gifts
Electronics

the #1 U.S. supplement brand in sales volume three
Food Storage

Stationery
Access Crafts

years running.
Women
-ories Party
Planning
Health &

Sources: handshake Marketing, Target
Beauty

► Learning: Behaviorally-based sales presentations Sale

Registers

not only help to seal the deal, they convey an
Rx

accurate marketing/sales potential story. Sale -
Grocery Entrance Food Court Restrooms Cust. Svc. Entrance

Copyright 2008, Confidential Property of handshake Marketing · www.handshakemarketing.com · 516-767-9394
2



Case Study: Marketing to “The Unbanked”

► Business Challenge: Predatory and fringe lenders, to the detriment of many households’ and
communities’ financial health, prey on low-income and minority households, charging
exorbitant fees and rates and keeping consumers in the cycle of poverty. Billions of consumer
dollars are lost to predatory loans (e.g., the average payday loan APR is 470%) each year.
Traditional financial institutions and CDFIs (Community Development Financial Institutions)
are vastly outnumbered in these communities and need marketing support.
► Solution: handshake presented a conference session for CDFIs and traditional financial
institutions on how to more effectively compete against predatory and fringe lenders. The
seminar included market research findings and marketing strategy recommendations,
including profiles of the “unbanked” consumer, tactics used by predatory/fringe lenders,
market penetration and value of the “unbanked” consumer, etc.

► Results: The session provided attendees
with marketing recommendations, facts,
and insights into the “unbanked”
consumer household.
► Learning: Understanding the
competition’s marketing tactics and why
they are effective with their targets (i.e.,
the targets’ personalities/preferences) “Unbanked” &
prone to fringe
lenders

can help us develop strategies for more (# households)

competitive marketing and counter
product offers.


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