DMANC List Summit April 18, 2007 What s New What s Tried and Still True

1. DMANC List Summit April 18, 2007 What�s New? What�s Tried and Still True?

2. Part 1 - How to Find a Broker and Specify Lists Lists are THE most important part of any direct marketing program. Buying lists is the single most difficult thing to do. The biggest mistake is not providing enough information to your list broker. The second biggest mistake is using the wrong list broker (or not using one at all). Use a list brief to avoid #1 mistake Choose a broker experienced in your specialty and with good references to avoid #2Use a list brief to avoid #1 mistake Choose a broker experienced in your specialty and with good references to avoid #2

3. Where do You Start? Check what�s available internally Do you have a database? Leads from trade shows or responses to other campaigns? What can be gathered by your sales force or through advertising? What can be done to your existing list to make it work better � soft offers, data gathering, data modeling, contact discovery, etc? Internal lists are always going to be more responsive. Plus you can look at these and get ideas for outside lists.Internal lists are always going to be more responsive. Plus you can look at these and get ideas for outside lists.

4. Creating a List Brief Before you contact a broker, ask yourself these questions: What is the problem to be solved? What happened to make this project necessary? What pain needs to be addressed? What is the program objective in quantifiable terms? Do we have results projections that we need to achieve? What results do we need to make money? To give to broker!To give to broker!

5. List Brief, Continued Who is the target audience? Who is this promotion aimed at? Who is my buyer? Be specific and paint a picture of your ideal customer. For businesses � titles, industry, size of company, geography, purchase patterns, etc. For consumers, age, HHI, demographics, psychographics, purchase patterns, credit scores, etc. What criteria disqualifies someone from buying from us? To give to broker!To give to broker!

6. List Brief, Continued What is the offer and how is it going to be fulfilled? Am I prepared to share a sample mailing piece? How is the offer going to be implemented? Do I need telemarketing follow up? Is this an email or postal campaign? What ideas can you come up with before you contact a broker? Do a Desktop Survey of association lists, membership lists, magazines read, etc. Examples on the partner, non-competitive trade side. Examples on the partner, non-competitive trade side.

7. List Brief, Continued When you�re sending the list brief, be sure to ask for the following on each list recommendation: Quantity overall available in your target Minimum test quantity, cost, etc. Whether the counts are one per address or one per company. Whether the counts include international (for email lists). How the list is compiled. Who else has used the list (your competitors) and more importantly, who has used it more than once. Ask for a Data Card Data cards have all sorts of interesting info � circulation, costs, etc. Data cards have all sorts of interesting info � circulation, costs, etc.

8. Sourcing List Brokers Get referrals for a broker from credible sources and/or get references. Interview the broker before you start. Get a non-disclosure agreement from the broker. If you�re working with new brokers, don�t rely on just one source. However, be fair about sharing the revenue and don�t shop each project. Never burn a good resource.

9. My Horror Story Good project � but difficult client Good project � difficult client At a rush No background available No relationship established Wanted a lot for free Had burned the relationship with previous brokers to the point where they turned down easy money Left me looking for a new broker two days before Christmas for a January 1 drop Picked a vendor I had worked with in the past and who had been recommended by my client She booked the email lists I gave her and all she had to do was place the orders. Wanted prepayment Didn�t run my lists and stole my money Will take months to figure out.Good project � but difficult client Good project � difficult client At a rush No background available No relationship established Wanted a lot for free Had burned the relationship with previous brokers to the point where they turned down easy money Left me looking for a new broker two days before Christmas for a January 1 drop Picked a vendor I had worked with in the past and who had been recommended by my client She booked the email lists I gave her and all she had to do was place the orders. Wanted prepayment Didn�t run my lists and stole my money Will take months to figure out.

10. Other Outside List Rental Sources Don�t forget to look into non-competitive trades for lists and partner lists Do your own research � particularly for online newsletters, traded lists and associations. Consider online newsletters, key words or guaranteed lead programs to supplement a postal or email campaign.

11. And Last� Put your orders in writing including price, delivery terms, deadlines etc. even if you�ve gone over the order verbally. Get counts from the broker and then again from your DP house to help confirm that you�re getting what you paid for.

12. DMANC List SummitApril 18, 2007How & Where to Acquire Lists Steve Borg Director of Sales Name-Finders Lists 225 Bush St., Suite #790 San Francisco, CA 94104

13. Background on DM Industry -List Selection: Over 40% of the success or failure a direct marketing program rests on the list selection. With over 53,000 lists on the market (Target Marketing March �07), it can be a challenge to identify which lists will best deliver the mailer�s message to their target audience & deliver results. -Datacards: The description and pricing for a list is represented on a datacard. This contains a summary description of the list, the source for the names on the list, the minimum order quantity, and pricing.

14. LIST SOURCES: The Direct Mail Rate Volume of the Standard Rate & Data Service (SRDS), which is the accepted reference manual for the entire dm industry, catalogs the majority of the business & consumer lists. The SRDS contains the contact information available for where particular lists are managed at & who to contact. The publication also has information on the lists themselves (datacards/rate cards) which provides pricing, counts, and selectability on each list (or file). This service is online and it is not the only list source: Marketing Information Network (MIN) and NextMark are comprehensive list sources as well.

15. List Sources Many List firms specialize in the management (& brokerage) of specific types of lists. Examples consists of: Compilers, Business Response files, Consumer Response Lists, Associations, Religious-based Lists, Catalog lists & Attendees to various seminars/events.

16. Contacting A List Broker A list broker is a specialist in the list industry who makes all the necessary arrangements for the rental of the list, from the list consultation, recommendation and selection, placement of order(s) and tracking the file to the mailhouse. Using a list broker should present no up front costs either. Brokers receive payment generally through the 20% commission built into the base price of most lists on the market they obtain when the list order(s) are placed. There are lists with 15% & 0% commission as well.

17. Pricing: An experienced broker will also negotiate pricing (on behalf of their clients) with the list managers based on certain order volumes or mailing budget. Examples are: Select fee waivers � Especially on multichannel orders. Net name arrangements � pay for 85% net on large postal order quantities (usually minimum of 50,000 names). Break on postal pricing for reuse list orders.

18.  Helpful Processing Tips When Contacting a Broker: Have enough time built into the mailplan to accommodate the research & order processing time on the list broker�s side. Usually a minimum of 5 business days. Have a fulfillment center or mailhouse contracted for the mailing. Brokers should be able to recommend one if asked. Have mailpiece or creative ready when broker requests that to submit it for list clearance. For email, the html & text versions must contain an opt-out link and company�s physical address located at the bottom. You will need to also incorporate time for the mailhouse or fulfillment center to do the merge/purge Will your house file be included in the mailing? Have that available to be sent to the fulfillment center or mailhouse for the m/p.

19. Email Marketing Checklist � Questions to Ask List Broker The following is a list of questions that need to be asked of a list broker when planning an email campaign for a client. List Source � Where do the lists come from and how were they obtained? For example: Are they lists that came from website registration, or opt-in email? Does the broker or agency own the lists? How often are the lists cleaned up? Response rates � what were the response rates for the past half-dozen campaigns? Do they have Data Cards for us to review? Can the list be split (�A/B testing�) if the client would like to send out different creative for testing purposes? What is the de-duping policy (if we want to rent multiple lists w/potential of having same subscribers on each list), based on what criteria? Is the list a text-only list or both HTML & text? If both, in what kind of format should the creative be produced � 2 separate pieces or one multi-part MIME. (Most lists are made up of both HTML and text, usually the HTML format will be deployed, and if the receiver can�t get HTML it will default to the text message. However some lists are only text, and should be pointed out by the broker or agency.) How are bounce backs or non-deliverable handled? Are there a certain number of over deliveries sent out to compensate for bounce backs and non-deliverables?

20. Email Marketing Checklist (cont�d) Minimum Order Requirement � what is a minimum amount of names that have to be purchased? (each list has it�s own requirement) What is the cancellation policy is each list different, or does the broker have a policy that covers all of their lists? Are they quoting us Gross or Net pricing? What are the numbers of test messages and selects allowed at no charge? (the charges are different for each list and should be specified on the Data Cards. Very targeted selects and extra services are always an additional cost per thousand names. Rush orders are usually an additional flat fee.) List Rental Agreements � Do they have to be signed by the client, or can they be signed by the agency representing the client? Does the List Agreement have to be in the broker�s possession before deployment of the email can take place? Can 3rd party ad serving be used for the campaign for tracking purposes? Is there any limit to the number of text links (URL�s) are allowed in the message? Can the sender field be personalized? How many fields can be personalized? How many names can be on the seed list? What�s the required lead time? (this number should include the approval of creative, test messages, and the list rental agreements. Usually there is a 4-5 day lead-time needed to launch a campaign, and this is after the creative is in the hands of the broker.) What kind of reporting is provided? Does the broker or the list owner provide the reporting? When/how quickly after deployment would we provided with this reporting?

21. DMA List SummitWhat�s New? What�s Tried and Still True? Judy Laine | Marketing Programs Manager

22. Who is Cast Iron Systems Technology start up Fastest growing integration appliance vendor Integration appliances allow companies to integrate multiple applications in DAYS Uses a �configuration, not coding� approach ROI return in as little as 4 months

23. Email Trends Double opt in/opt in vs. opt out Flat or declining response rates Multiple levels of spam filters (ISP, corporate, individual) Declining deliverability � Pivotal Veracity � Return Path Negotiate over blasting so net delivered is on target Lead guarantee programs

24. Define Tests List Qualification criteria (title, industry, # employees, buying influence, type of technology, etc.) Offer Creative Subject line (emails)

25. Set Up List Tests Divide data into test cells Make sure you can track the results on the back end � Key codes for direct mail � Unique URLs for email Extra charge for A/B splits or additional tests

26. Lists � Helpful Tips Start with ideal list selections Get counts by selection criteria Select list with the most names in your target Determine roll out potential Expand selections as required to make minimums

27. Lists � Helpful Tips Cont. Omit 3-line addresses Select geography Test selections within a list Recency, frequency, monetary Multi-pronged combined program

28. Merge Purge � Data Cleanup Specializes in B-to-B Omit national �do not mail� file Update addresses with NCOA Omit competitors (competitor domains) Zip code cleanup (zip +4) Postal sortation for postal economies Omit personal email addresses (yahoo, gmail, aol, msn, etc.)

29. Merge Purge � Data Cleanup (cont.) Suppress prior merges/emails Eliminate duplicates Set up test cells Flight mailings Control # to each company

30. Qualify Leads Qualification survey � Keep it short � Purchase timeframe � Budget � Decision role � Market specific questions � Industry � Title � Employee size/revenue

31. Lead Rating Rate leads based on qualification survey � Prioritize leads � Evaluate quality � Evaluate programs � Evaluate partners � Project future results

32. Program Evaluation � DM List Analysis Percent response Cost/response Percent qualified leads Cost per qualified lead/sale Qualified lead index (5,000 x % response x % qualified leads) Perform this analysis for each test cell

33. Program Evaluation � Email Analysis Emails sent Hard/soft bounces Emails delivered Opens/open rate Email visitors Unique visitors Click throughs Form submittals Sales Perform this analysis for each test cell

34. Build Up House File Internal lists outperform external lists Collect names from all sources Collect profile information Puts you in control Utilize CRM systems

35. CRM Systems � Lead Nurturing Programs Approach with the same discipline Test, test, test Set up multi-touch, trigger-based programs Work closely with sales team/product marketing/chanel partners Match marketing programs with sales stage Back off when lead enters the sales funnel Continue to nurture �0%� opportunities Real-time alerts Form alerts

36. Thank You! Judy Laine Marketing Programs Manager Cast Iron Systems jlaine@castiron.com (650) 230-9934