KXEN Analytics Thought Leadership Conference November 12, 2009 Atlanta

Kelly Tagtow Meredith Corporation

Company Overview Business Problem Barriers to Success

Solutions

Results Lessons Learned Q&A

Leading marketing and media company dedicated to inspiring women 75 million women interact with Meredith brands on a daily basis They engage with our business through: More than 450 books in print 12 local television stations More than 30 branded Web sites Broadband video channels
24 leading subscription magazines More than 200 special interest publications

One-touch email communications

Product focused

Limited segmentation and testing Focused on larger titles What we wanted to sell, not necessarily what
customer wanted

Email deployments were labor intensive

List output with Teradata Relationship Manager Files manually uploaded to email solution Content created & deployed with email solution Response data not part of customer warehouse

Without changes, risk of over-promotion and in-box irrelevance was high Current processes and technology designed for mass communication and were resource intensive To meet 3-5 year business goals, hiring 5-6 new employees would be needed

1-1 communication, with highly targeted and relevant emails using customer demographics, contact history and interactions with past email campaigns Streamline and automate processes between Teradata CRM and email provider Promote more titles more regularly

Three main campaign types

Win-back Cross-sell Acquisition

(past subscriber to title) (active, promote other magazine) (prospect, get first order)

Each has a 3-step contact strategy

Open? No Yes Yes Yes Click? No No Yes Yes Order? No No No Yes Next Action Change Subject Line Alter message Change landing page / offer Eligible for next best product

Campaign promotion and response data not available Manual steps between CRM output and email provider Predictive analytics process built for ondemand build and score Limited staffing

Promotion History

Response Information

Campaign data CRM set-up information Date/time of deployment Bounce-backs (email not delivered) Open (the email message) Click (the URL) Order (the magazine)

85,000,000 consumer records Over 3300 data points 30 data sources

Teradata 4 Node NCR 5500 Server

Soon to be V12

9 million records loaded each week 12 million names for promotion output each week

Improve use of TRM

Automate feeds to email provider

Load email message content within tool Set-up single-step recurring campaigns Up to 7 parallel data feeds Includes message content along with email lists Start mail feed used to deploy messages

ADS built using custom SQL macros

Over 1,000 analytic data points available
Proprietary best demographics and composite interests Customer order/transaction details and aggregates Promotion history, by product and channel Newsletter and email registration data

Teradata Customer Database

V2R6.2

SQL Macros

Models are profiles of one magazine to another Each magazine has its own model
10,000 active subscribers to that title 10,000 other magazine subscribers

How does a Wood subscriber compare to all other magazine subscribers? One table created to house all samples 19 different models were built

Analytic data accessed thru ODBC to Teradata

Used SQL to select just the data needed
Select * from CreativeDB.IN0347_kxen_anlysds_KT where Target_WDM >= 0

Model results help determine next best product offer

Each model is scored for each customer Scores are ranked high to low Highest score is the product to promote that week for that customer

Dynamic scores

Data changes daily, weekly and monthly Each week could produce a new max score and product recommendation

Past models used Teradata SQL

UDFs decreased model implementation time

Good in-database scoring option But needed ~1 hour development and testing time per model to embed in SQL scoring process Just a few minutes to compile each UDF model Developers were impressed that all code was created to generate the UDF (C code and SQL for BTEQ) Just execute the UDF in a Select statement

Provides easier access for others to use

* COPYRIGHT: KXEN (c) 1999-2004 * GENERATED BY: KXEN Analytic Framework - Meredith Corporation - Meredith_US_2007_06_29 - Kelly Tagtow NEW 5.0.3 - Copyright KXEN (c) 1999-2009 * FILE: J:\jobs/IN0347/progs/udf_c_code/wdm_propensity.bteq * RESOURCE: J:\jobs/IN0347/progs/udf_c_code/wdm_propensity.teraudf * FEATURE: UDF * NAME: wdm_propensityrr_TARGET_WDM * SETUP: None (setup included in script) * TYPICAL USAGE: SELECT wdm_propensityrr_TARGET_WDM( CI_WOODWORKING,B_GENDER_CD,RMD_LASTORDERSOURCE_CATEGORY,EML_DATASOURCE_DESCR ) FROM <TABLE> * EXECUTION TOOL: submit to BTEQ on Unix or W2K DROP FUNCTION wdm_propensityrr_TARGET_WDM; CREATE FUNCTION wdm_propensityrr_TARGET_WDM( "CI_WOODWORKING" INTEGER, "B_GENDER_CD" VARCHAR(255) CHARACTER SET LATIN, "RMD_LASTORDERSOURCE_CATEGORY" VARCHAR(255) CHARACTER SET LATIN, "EML_DATASOURCE_DESCR" VARCHAR(255) CHARACTER SET LATIN) RETURNS FLOAT LANGUAGE C NO SQL CALLED ON NULL INPUT DETERMINISTIC PARAMETER STYLE SQL EXTERNAL NAME 'CI!wdm_propensity!J:\jobs/IN0347/progs/udf_c_code/wdm_propensity.teraudf!CS!wdm_propensityrr_TARGET_WDM!J:\jo bs/IN0347/progs/udf_c_code/wd m_propensityrr_TARGET_WDM.c'; COMMENT ON FUNCTION wdm_propensityrr_TARGET_WDM AS 'Copyright KXEN (c) 1999-2009 - Generated by KXEN Analytic Framework - Meredith Corporation - Meredith _US_2007_06_29 - Kelly Tagtow NEW 5.0.3'; ALTER FUNCTION wdm_propensityrr_TARGET_WDM EXECUTE NOT PROTECTED;

Execute SQL process Monday morning Market smarter scores set to zero if: SQL view created to pick the max score Score history aggregated for trend reports
Maximum score ~ Best product to offer Customer subscribes to, or recently ordered Promotion threshold reached Over 16 million records scored Each UDF executes in roughly 1 minute

Audit model scoring for data changes may impact segmentation results Provide feel for selection quantities Assess segmentation results beyond the max score Dynamic dashboards provide interactive monitoring tool

29-50% improvement in order rates

(Better Homes and Gardens)

20-40% more email-generated subscriptions within 3 months compared to previous yearTOTAL (Fitness and
Family Circle)

Focus on the business needs, not just cool technology Butmaximize use of BI tool investments Allow for growing pains

kelly.tagtow@meredith.com