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The growth in e-mail marketing has
created a need for demographic and psychographic information for
the delivery of targeted electronic offers. And electronic marketers
have managed to collect large datasets of demographic and psychographic
information.
Specifically, this data-warehousing
effort has evolved from the free e-mail services on the Web.
For the end-user, free-mail services
are convenient, delivering several key benefits. They provide users
with a permanent e-mail address, regardless of their Internet service
provider. Since the vehicle for using free-mail services is a Web
browser, registered users can access their e-mail from any Internet-connected
computer.
Several of the more popular companies
offering free-mail services include USA.NET, with its NET@DDRESS
program; WhoWhere, which offers MailCity; Juno, which was one of
the earlier players in the free-mail arena; Netscape (NetMail);
and Yahoo (Yahoo Mail). Such organizations boast free-mail registration
bases of several hundred thousand to millions of registered users.
Although these firms are relatively new, they have in fact collected
a large base of demographic and psychographic data.
USA.NET performs its data-collection
activities in two phases. First, the user is presented with a one-page
form to collect basic demographic information, which is followed
with a multipage selection area to select specific areas of interest.
USA.NET makes it very clear on how the data will be used, stating
that "USA.NET collects this information for our own general demographic
and may itself use this information to provide targeting and advertisements
and other service offers."
Along with basic U.S. mailing address
data, USA.NET allows users to enter in the country as well as an
optional telephone number. This baseline information is augmented
by collected elements that include gender, age range (broken into
five- and 10-year ranges), marital status, combined household income
and profession. Pull-down elements for profession include administration,
education, executive/management, government/military, home maker,
manufacturing/production, professional, sales/marketing, self employed,
student, with a free-form field for "other."
After the users submit their basic
registration information, they are presented with setup choices
for USA.NET's "Direct Delivery" program, which allows users to opt
in to receiving targeted e-mail news and information from a growing
base of vendors. Users can make changes at any time,
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controlling the types of e-mail offers
they receive. Based on the vendors in place at the time of writing,
psychographic interests such as financial/investing, music, computer
hardware and software, books, health and fitness, career advancement,
sports and entertainment, to name a few, are selectable.
WhoWhere's MailCity states clearly
in its terms-of-service agreement that "WhoWhere and/or third parties
may, from time to time, send e-mail messages to users containing
advertisements, promotions, etc." In addition to basic name and
address information, it warehouses the year of birth, marital status,
income range and education level.
WhoWhere also collects detailed information
about the user's company, collecting the industry type (accounting,
MIS/DP, Internet, software development, consulting, education/training,
engineering, government/military, legal, manufacturing, medical,
R&D, sales/marketing) and company size range and employment status.
Though users are typically registering for their home/personal use,
the corporate information provides inferred information on their
buying habits (i.e. a user employed at an engineering company would
be responsive to highly technical offers). It also allows the generation
of targeted business-to-business offers, where these individuals
may influence or actually make purchasing decisions at work.
Augmenting the basic mailing and
company data, WhoWhere collects psychographic information and purchasing
interests by querying free-time activities through such choices
as computer games, cultural events, cooking, movies, music, finance/investing,
cars, travel and sports interests, including aerobics, cycling,
football, golf and snow sports, to name a few. Users also are asked
what they plan to purchase in the next three months, with choices
such as a car, home, consumer electronics, computer, peripherals
and/or software. Final questions include the primary Internet access
point (work, home or school), presence of children and if the user
would purchase products over the Internet.
Certainly, we all agree on the basic
rule of thumb for a direct mail product-registration card, specifically
"less is better." Interestingly enough, Web users seem to enjoy
clicking various option boxes and making selections from pull-down
menus, as evident by the high percentage of data elements collected
by the various free mail service providers.
Based on the types of numbers and
the level of data being warehoused by these and other free-mail
services, it is evident that the Web, via its own evolution, is
defining and segmenting itself in a traditional direct response
marketing sense. If and when opt-in data from these organizations
becomes available for external rental, it will be interesting to
further analyze the types of individuals who have made the Web part
of their daily activities.
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