1. Switzerland’s leading direct mail service company introduces DMC-SPS©
Presentation for
Optimize your direct marketing effectiveness through DM[Pro]&DM[Map]
Guido Gemperli (Head of Sales and Marketing)
9th/10th October 2008

2. Agenda New “visions” for door2door advertising Page 3
DMC GeoMarketing: DMC-SPS© Page 4
Isochrono-method Page 5
Demographic characteristics Page 6
Customer data Page 7
Case study: McOptik Page 8
Isochrono-method Page 9
Isochrono-method & language Page 10
Isochrono-method & language & customer data Page 11
Conclusion Page 12
Analyses of the first distribution with the DMC-method Page 13
People for innovation for 46 years Page 14

3. New „visions“ for door2door advertising
Patch area: D-1‘320‘000 hh F- 192‘000 hh F- 250‘000 np.inserts
Total 1.5 Mio. hh
Initial clients direct marketing situation: Distribution without structure and no customer-related focus. Major waste coverage. Most parts of the French speaking part of Switzerland are covered by newspaper inserts. Reduction from 1.5Mio to 1.3Mio required.
McOptik is the leading optical retailer with 52 branches in Switzerland. On the following show case

4. DMC GeoMarketing: DMC-SPS©
DMC-SPS “Smart, Potential Selection“ consists of following tools:
Isochrono calculation: Patch area definition
Demographics: select income, age, living area/quarters
Customer data analysis: effective clients consumer data such as address (=living area), product interest, price level, sales per month/year will be compared with the defined patch area from the DMC-SPS© Isochrono calculation.

5. DMC-SPS©: “Smart, Potential Selection”: Isochrono-method / Patch area definition
Definition of stores/branches
Chose the relevant parameters like: distance-radius in time/km, conveyance by car/by foot, velocity, urban or countrified region etc.
Rating per ZIP
Variations: Areas with 10min., 15min. and 20min. of distance by car:
RED (10min) 500’000 hh
ORANGE (15min) 750’000 hh
GREEN (20min) 1 Mio hh

6. DMC-SPS©: “Smart, Potential Selection”: Demographic characteristics
Target group definition
Target groups: The precise inclusion and coverage of product specific target groups is the most important guarantor for high rate of return/response, reliable statements concerning advertising effectiveness and customer acceptance.

7. DMC-SPS©: “Smart, Potential Selection”: Customer data analysis
How DMC-SPS© customer data analysis works:
Our clients customer data such as age, address, product preferences, date of last visit, sales-rate/year/month are graphically shown in the same map. It shows the percentage of customers related to all potential households per ZIP.
By comparing this data/graphic with the computer-generated Isochrono/demographic analysis, we receive important information concerning the value of your advertising media. >> “Do we advertise the right product in the right region?”
Questions like these are often the basis for strategic changing and new, firing ideas!

8. Case study: McOptik DMC-SPS©
Target McOptiks intention was to advertise the branches and their patch areas in an optimized manner. The McOptik flyer will remain the main advertising medium as direct marketing instrument.
Method For an optimized media planning a DMC-SPS analysis (Smart, Potential Selection) was recommended: Main indicators were the McOptik branches (Isochrono-method), demographic facts of the market as well as McOptiks customer data (about 275’000 contacts). The data was analysed and compared. The new patch area was defined based on the DMC-SPS© Isochrono-method (distance by car in minutes) and the customer performance (analysed McOptik contacts).

9. Patch area analysis for McOptik branches : DMC-SPS©: Isochrono-method
This graphic shows the branch coverage related to the patch area. It has been analysed and defined by means of the DMC-SPS© Isochrono method.
Patch area: D-1‘100‘000 hh F ‘000 hh Total 1.3 Mio. hh
Conclusion The distance should be increased on >12 minutes. The individualisation per patch area / branch is possible.

10. Patch area analysis for McOptik branches: DMC-SPS©: Isochrono-method & language area
This graphic shows the branch coverage related to the patch area considering the number of households per language area. The distribution area has been analysed and defined by the DMC-SPS© Isochrono method, also considering the demands to the language area.
Patch area: D-976‘000 hh F- 324‘000 hh
Total 1.3 Mio. hh
Conclusion: The French part of Switzerland is not ideally covered and the „patch area“ aspect should be better involved.

11. Patch area analysis for McOptik branches: DMC-SPS©: Isochrono-method & language area & customer data
This graphic shows the McOptik customer value related to the DMC-SPS© generated patch area (black line). Customer data such as age, address, last sale, product preferences have been integrated in the analysis.
Patch area: D-976‘000 hh F- 324‘000 hh
Total 1.3 Mio. hh
Conclusion: The DMC-SPS© area is more or less congruent with the effective clients of McOptik (except VS/GB). New strategy could be to invest in regions with less congruence which means: Gain new customers
DMC-SPS© Isochrono generated patch area

12. Patch area analysis for McOptik branches: DMC-SPS©: Conclusion
After the three DMC-SPS© analysing steps, the following conclusion can be summarised:
DMC-SPS© Isochrono method The distance should be increased on >12 minutes. The individualisation of each patch area per branch is possible (f.e. country versus city region).
Prove The French part of Switzerland is not ideally covered and the “patch area” aspect should be better involved.
Customer data The DMC-SPS© generated area is more or less congruent with the effective clients of McOptik (except VS/GB). New strategy could be to invest in regions with less client percentage.

13. Analyse of the first distribution with the DMC-SPS© method
Successful campaign!
Confirmation New distribution in the French part of Switzerland: The number of customers is steadily increasing since the media plan changed according the DMC-SPS© method
Prove Leaflets are proving to be the most effective media for driving traffic to store for specific offers.
Persuaded customers McOptik is optimistically convinced and will continue to pursue the new strategy created by means of DMC-SPS© which means: Before each new distribution task we will re-analyse all data according the DMC-SPS© method in order to be up-to-date: Power, drive, speed!

14. Your success through our DMC-SPS©-method & DM[Pro]&DM[Map] software!
„People for innovation - for 46 years“
Your success through our DMC-SPS©-method & DM[Pro]&DM[Map] software!
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