1. More data on this topic available from:: How to Make Each Subscriber More Profitable Retention From Trial Josef Mandelbaum President and CEO American Greetings Monday, May 7, 2007

2. More data on this topic available from:: 2 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Up-selling Dynamics 1. Upon completion of a sale in an order path, there is a unique opportunity to up-sell or cross-sell.  Consumer attention is focused.  They are in a ‘purchasing’ mindset.  Credit card information is readily available. 2. Common uses of this opportunity include cross selling and up-selling products from both site owner and 3 rd parties.

3. More data on this topic available from:: 3 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Case Study I: Up-selling At Purchase Before After

4. More data on this topic available from:: 4 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. 1. We were able to increase our ARPU from the purchase page by 27% from $13.95 to $17.75 2. We have tested many variations and the formula that seems to work best has the highest price point at the top of the page. We use multi-variant testing models to isolate variables 3. We have also tested 3 rd party offers and they do work and provide a higher initial value but with renewals of our existing products the LTV is higher for our own up-sells. 4. We will occasionally add in 3 rd party offers for a limited time if the effective CPM is above our threshold. Case Study I: Up-selling At Purchase

5. More data on this topic available from:: 5 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. 1. The Reminders page of our order path does not sell a product, but rather uses the power of that moment to engage the usage of our Reminders Service. 2. The page simply asks these new customers to complete a couple of quick fields to setup their first Birthday Reminders. 3. Reminders is a free product, but also one of our largest positive drivers of retention and usage. 4. Reminders page results: 64% lift in Birthday Reminders/Order 14% lift in overall Reminders/Order. 5. The lesson here is action moments like the order path can also be used, post sale, to improve other key metrics like usage and engagement. Case Study II: Basic Activation via Usage Reminders

6. More data on this topic available from:: 6 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Case Study II: Usage Reminders

7. More data on this topic available from:: 7 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Case Study III: Advanced Segmentation Set up Append a number of variables (see below) to each of the approx. 13k orders that were involved in our Trial Retention Test, split the orders by each variable individually and look for differences in payment rates (GSRR) and behaviors. Key Performance Metric targeted GSRR (Gross Subscription Retention Rate) 1.Total ECard usage 2.Total CnP usage 3.Age 4.Gender 5.State 6.# different ECard categories 7.# different ECard products 8.# different CnP categories 9.# different CnP products 10.Time since Create Date 11.# reminders 12.# address entries 13.CC Type 14.Benefit 15.Marital Status

8. More data on this topic available from:: 8 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Analytic Approach Attempt to divide the population into equal size segments (fifths ideally, if not then fourths, thirds,…) along each variable individually. Measure the GSRR by each segment for each variable and look for sloping (i.e. for variable x, segment A has a GSRR of 93%, segment E has a GSRR of 65%). Determine the success of each variable in providing differentiation. A variable can be less successful for 2 different reasons: 1. Modest sloping (i.e. all segments have GSRRs around 83- 85%) 2. Segment clustering (i.e. the 95% GSRR segment has only 0.5% of the orders) Overlay data with Acxiom data and @plan data to help ad sales better target relevant cross sell opportunities

9. More data on this topic available from:: 9 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Quantitative Results Number of reminders set was the 5 th best of 13 variables.

10. More data on this topic available from:: 10 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Benefit was the 4 th best of 13 variables. Quantitative Results

11. More data on this topic available from:: 11 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Number of address book entries was the 3 rd best of 13 variables. Quantitative Results

12. More data on this topic available from:: 12 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Credit Card type was the 2 nd best of 13 variables. Quantitative Results

13. More data on this topic available from:: 13 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Subscriber Age was the best of 13 variables. Quantitative Results

14. More data on this topic available from:: 14 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. So what does this mean? Results: Initial retention (GSRR) increased by 21% Annual retention for consumers with more reminders and address book entries is 32% higher than the control Increased ad revenue by $800k through cross sell deals

15. More data on this topic available from:: 15 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. 3 Tactical Takeaways 1.Test, test, test – this is a classical direct marketing (set up an internal BI team) 2. Find the right offer for your audience through segmentation 3. If you have limited resources create 2 buckets of opportunities for your team to work on: Small items that add incremental value (need to do them) Don’t get stuck in the weeds invest some of your time on testing big ideas that can really move the needle

16. More data on this topic available from:: 16 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Thank You Josef Mandelbaum American Greetings.com Josefm@ag.com