Totalsource Plus, Shoppers Voice, Epsilon TXSpend, Digital

3. Financial

1. Provides deep insight into the financial measures (income, available credit, financial stress, assets and ability to pay) that impact consumer purchase decisions.

Why did we develop ETA?

1. The Abacus Cooperative's original "Pay to Play" requirement meant that only Cooperative members could take Abacus data. ETA does not have a contribution requirement. 2. Some marketers don't compete with our current clients, and for whom the Abacus data can provide strong performance. These may be companies whose data we don't want on the cooperative. a. Marketers in industries that are different from our contributing clients. i. Mortgage data, Finance, Insurance, Banking, Restaurants/hospitality, etc. 3. Abacus cooperative contributors signed new agreements over the past fifteen years, providing permission for their data to be used for non-competitive offers. 4. The Abacus data is powerful and provides strong performance to marketers who do not compete with the Abacus client-base. 5. Epsilon has growth goals that require that we develop client relationships outside of the core Abacus client market

1. Demographic

1. The TotalSource Plus Demographic dimension provides unparalleled coverage and accuracy of core demographic characteristics of individuals and households. Demographics include things like: age, household make-up, length of residence, occupation, ethnicity, etc.

What is an Install

A license of names/address from our data with specific data attributes included Ø Specific Use (resellers) usually has terms that the company can use the data install for a specific use case - will be mapped out in the contract Ø Unlimited Use (client) usually allows the marketer to facilitate unlimited campaigns and analytics out of the data for the licensed period of time

TotalSource Plus

A powerful compiled consumer data source supplying thousands of data points spanning demographics, lifestyles, spend behavior and more. With coverage of virtually every U.S. household, TotalSource Plus helps you understand your customers on a deeper level and reach new customers both offline and online.

Contact Complete

Appended contact details that are missing from the brand's own customer contact record (i.e. filling in the gaps of the contact record)

How do marketers use Shopper's Voice?

Based on revenue today (2021), the priority of use for SV is as follows: 1. Data Enhancement/Data Install 2. Omni 3. Email or Lead generation 4. List (direct mail)

P = Production File

Best records for mailing purposes and telemarketing (if phone number available). These are mailable records that Epsilon uses for the TotalSource Plus list orders. In order for a household to be classified as mailable, it must have been verified within the past 24 months (depending on the specific household type) and met DPV and ZIP + 4® coding criteria as required by the U.S.P.S. (United States Post Service).

Sigma and DataONE

Both solutions leverage data from both transactional and compiled data assets in order to create an unparalleled and holistic view of the prospect audience we are developing for a client. Both solutions share these characteristics: Ø Utilizes matches between Demographic, Financial, and Lifestyle TSP data and the Market Activity Variables file which includes RFM data and category of purchase. Ø Models are built with Machine learning. Ø Not available for Abacus Cooperative contributing members Ø Require 10,000 in the profile group Ø The model is preapproved for certain non-contributer clients in these categories: Finance, Healthcare, Telco, Travel, Home builders, Political, Insurance, Senior Living, Builders, Nonprofit Education, Utility, Home Security, B2B. § All others require PM approval.

Hygiene

Cleaning customer records to improve marketability and delivery of customer records

2 Stage Models (Matrix Models)

Combines scores from models that are predicting response as well as one predicting a second criterion (typically paid indicator) to further refine the best prospects to target.

What is Data Enrichment?

Data Enrichment is an umbrella term that includes several processes designed to improve a client's first party customer file.

Automotive

Detailed automotive data to enable marketers to understand the year, make and model of all vehicles parked in the garage

3. Market Trend Target

Every household within TSP is ranked on their profile/model that was built against the custom audience. We build 99 ranks for each market trend, with rank 1 looking most like the profile group and rank 99 looking least like the prospect group. Each rank represents about 1% of the total TSP database or approximately 1MM households in each rank.

S = Supplemental File

May be used for mailing with caution, not for telemarketing. These records are usually used for Data Appending purposes. Records are designated as Supplemental for any of the following reasons - records have not been verified within the last 24 months, the household/individual has been name censor coded as they have requested not to receive direct mail, the individual is deceased, the household/individual has moved and we have no forwarding address (nixie).

Residential file (DE only):

May be used for mailing with caution. These records are only used for data appending purposes. Records are designed as Residential because they have a USPS verified deliverable address, but individuals at the address do not meet TSP Production/Supplemental/Telemarketing file standards.

T = Telemarketing File

May not be used for mailing purposes, Telemarketing only. Records that do not meet the Production file standards but do have telephone numbers that Epsilon can sell for telemarketing purposes.

6. Market Trends

Modeled data that delivers unprecedented insight into the behaviors and propensities of customers to engage, purchase or consume products and services

Onboarder

Onboarding is the process of taking an offline record and associating it with a cookie. This is typically done by matching against known subscriber information (usually, using an email address).

2. Model Building Blocks

Profile group is used to identify key attributes of consumers who are most likely to also demonstrate that behavior or intent

5. Market Indicator

Proprietary, unique set of multi-sourced transaction based variables that can provide insight into household economic activity and buying behavior

2. Lifestyle

Provides actionable intelligence about consumer interests, behaviors and activities across a multitude of categories providing superior targeting criteria and customer insights. The lifestyle dimension of data is primarily sourced from: Surveys, publishing lists, transactional data.

1. Proprietary Question on Survey (Shopper's Voice)

Question respondents are collected in order to create a profile group of consumers known to have the desired behavior or intent to buy

What do we have to have in place to be SOX compliant?

SOX auditing ensures that companies are reporting accurate and complete financial records. To that purpose, we have to have documentation that verifies we have agreement to how price on how we bill clients for our products and services. We have to have specific documents in place for every client/order: Ø Appropriate contracts Ø Agreement to price Ø Proof of shipment

Index

The index is a way for us to see which attributes the customer sample is over or under penetrated. § Example. An index of 200 in the client sample compared to the overall TSP universe would indicate that their customers are 2x more likely to have that characteristic than the average US consumer.

How is head of household defined?

The primary name on TotalSource Plus is determined using a number of business rules. In essence, the decision is made by looking at the verification date, number of sources, and types of sources contributing to each given name within the household. Using this logic, the primary name can change from update to update based on recency of source information and what sources contributed

Agreements

These are stand alone contracts that cover a single product or service and do not require a signed MSA with the client. Agreements have to be signed for each product or service Epsilon is going to deliver for the client

4. Triggers

Time-sensitive insights into consumers who could be looking to buy and targets consumers who will soon pass into a new life stage or have just passed into a new life stage

Modeling

We can create a ranked universe of prospects within TSP based on a client supplied customer sample

Data Append

appending data elements found on the TSP compiled file. Examples can include age, income, networth, homeowner, Niches, etc...

Discover Model

is an advanced machine learning model for acquisition leveraging both TotalSource Plus & Epsilon TxSpend data. It uses more than 100x the number of variables as a traditional model to score incremental, high-performing prospect audiences available for activation in any channel. Both Abacus clients AND non Abacus clients can utilize the Discover model. Ø Financial Clients CANNOT use this model Discover Models should be rebuilt quarterly. The turn around time is close to 7-8 days. There are initiatives to shorten this timeframe that will roll out in 2022. Profile group should be at least 10,000. Ø 1st party customer data is preferred. Ø When customer data is unavailable, we could use Shoppers Voice or MRI (there is a cost for MRI) for a DM or Email audience builds, or for digital builds we can use either Shoppes Voice or TxSpend (cost for TxSpend)

Specific data

is known, exact data selects that have been collected directly from the source and associated with an individual consumer, their household or their address

Tags

lines of code that live on websites that a user visits o Identifies cookies installed on a device, then report back to the companies that install the cookies · In the name of consumer privacy, web browsers are eliminating third-party cookies (3PCs) and other common identifiers, like device IDs.​ · 3PCs are already gone on Safari and Firefox. And Google Chrome, which represents nearly half of U.S. browser marketshare*—will be removing them soon.

Proof of Shipment

often this is the email sent from Epsilon to alert the recipient of the data file being posted.

DataONE

provides large prospect pools to meet clients growth needs in single campaigns and across the year Ø 250,000+ universe Ø Segment sizes are typically 100,000 or more.

Sigma

provides smaller prospect pools to meet client's needs Ø 50-250,000 universe Ø Segment sizes are typically set at 50,000.

Inferred data

Ø is proven, proprietary models & algorithms that draw upon specific household data to infer select information for a given individual, household or address

Cookies

small text files stored on a device that collect information when a user visits a site o Created to allow marketers to target their audience, track analytical data, and deliver personalized ads o Misconceptions about cookies made by the average consumer today include: § cookies do not present themselves as a privacy threat § they can only be used to store information that has been volunteered § they are heavily regulated

Address

ØA unique address point. § Example: 123 Mainstreet, Anywhere USA 10000

Programmatic Advertising

the use of automated technology for media buying (buying ad space) as opposed to traditional often manual methods of advertising. This process makes it easier for advertisers to purchase ad space quickly through automated practices. · Programmatic advertising is a campaign tactic focused on prospecting. · SSP (Supply Side Platform) - a software system that allows publishers to offer their available inventory to ad exchanges · DSP (Demand Side Platform) - a type of software that allows an advertiser to buy advertising space with the help of automation · RTB (Real Time Bidding) - The process in which digital ad inventory is bought and sold that can occur in less than a second · Essential components of programmatic advertising: o Data, Inventory, and Technology

Social Networks

§ - A platform that enables users to connect with one another and communicate by posting information, comments, messages, images, etc · A "walled garden" · Social networks typically have their own "native" ad units · Marketers can load custom audiences to Facebook for targeted media campaigns · All users have to log in à social networks can often onboard offline data

DMP

§ Data Management Platform - "Software that ingests, stores, and pushes out marketing data" · Allows users to overlay 1st, 2nd, and 3rd party segments to create "net new" segments that can be executed against · Users can access 3rd party marketplaces of data from multiple providers · Analytic applications include · Overlap reporting · Audience sizing · Frequency analysis (cross-platform/cross-device)

DSP

§ Demand Side Platform End to end media execution software, typically for display, mobile, and video ad units · Often supports both self-service or managed-service · Functionality includes o Setting up targeting and budgeting parameters o Buying media o Reporting on usage and performance

Why would a marketer need Contact Complete?

§ Deploy omni-channel campaigns (i.e. contact customers through multiple marketing channels) § Improve customer match rates § Re-engage lapsed customers § Retain customers with relevant messaging personalized across channel § Measure results accurately across channels

Ø Reasons why a client would work with Epsilon:

§ Industry Leading Data - best in class data and the most comprehensive data set on the market § Omni-Channel Activation - target the same exact audience offline and online § Consistent View of the customer across channels - audience persistency and the ability to target customers consistently with the same data sets offline and online § Easy to execute - Epsilon has already established partnerships with many of the preferred partners for online execution making the process seamless to the client § Delivers reach and scale - the most comprehensive data set on the widest footprint of US households anywhere § Cost Effective - competitive pricing with better quality

What services are included in Contact Complete?

§ Reverse eAppend - client sends email only records, we append full postal name/address § Reverse Phone Append - client sends phone only record, we append full postal name/address § Address Append Name/ZIP match - client sends full name and zip code, we return full postal name/address record § Address Append Trade Area Capture - client sends name/ZIP or name/ZIP of store location and we send back full postal name/address record § Phone Append - client sends name/address record, we send back with phone number appended as well § eAppend (done through Claritas, not an Epsilon service ) - client sends name/address record and Claritas helps to append email address

Household

Ø : Multiple Individuals who share a surname at a given address point. We hold up to 5 individuals in each household within the TotalSource Plus file. Example: The Smiths, 123 Mainstreet, Anywhere USA 10000

compiled data

Ø A database that has been created from multiple sources including public records, registrations and surveys, direct response, directories, phone books, or court records. Ø Compiled data will include different types of data like: demographic, psychographic, behavioral, attitudinal data, financial, life-stage, transactional, etc.

What is a List?

Ø A list is a prospecting audience selected from TotalSource Plus for a single marketing campaign. Typically lists are selected by combining specific attributes to identify the best prospect audience for a brand's specific offer. Ø Lists are billed at the current rate card price, by taking the TSP base rate ($25+) and adding in the costs of the client specific selection criteria. Ø Example: § Base price $25/M Marital Status $3/M Homeowner $7.50/M $35.50/M

What is a net name arrangement?

Ø A net name pricing arrangement provides credit for duplicate names in the mailing list being rented. When renting a mailing list, it is likely that list contains some of the same names on the client house list or on other lists they are renting. Ø These duplicates are typically identified through the merge/purge process. The net name arrangement consists of a percentage and a run charge. The percentage is the minimum percentage of the quantity ordered that must be paid at the full rate. The run charge is the rate charged for the duplicates. § Net name agreement volumes are established at a Single Order Level, not yearly contractual volumes § If annual commitment discount is requested, see Product Management for approval § Any variation from standard net name agreement pricing must follow the appropriate discount approval guidelines § Run charges of $8/M apply

Individual

Ø An individual consumer with a unique given name (first name) and surname (last name) at a given address point. § Example: John Smith, 123 Mainstreet, Anywhere USA 10000

Business Rules for creating a competitive category:

Ø At least three merchants/brands have to be included in the competitive category Ø One brand cannot make up more than 50% of the total spend taking place within the competitive set.

Agreement to price

Ø Client PO Outlining Pricing Ø Signed SOW - Statement of Work with Price Outlined Ø Annual Pricing Agreement - Custom pricing paradigm specifically for that client or broker Ø Signed ELS Order Proposal Ø DPF - Discretionary Pricing Form

Profile Reports

Ø Descriptive reports that allow the marketer to look at how their customer indexes on all TSP attributes to the average US Consumer to uncover unique and differentiating characteristics of their customers. We can also benchmark to other populations if the client would prefer to see a different comparison than that of the average US consumer.

Digital Activation

Ø Developing custom built audiences from our best in class data sets and activating those audiences for targeted marketing campaigns in any channel. Ø A client can use an audience developed through any of Epsilon's data sets (Aba, TSP, SV, TxSpend) through the following channels: o Direct Mail o Digital Display § DMP § DSP § Conversant List Activation o Social (Facebook, Instagram, Twitter, Pintrest) o Email (through Claritas) o Addressable TV

Who are some of TotalSource Plus competitors?

Ø Experian's InSource Ø Acxiom's InfoBase-X Ø DataAxle (formerly Infogroup) Ø KBM's AmeriLink (KBM is part of Choreograph/Wunderman Thompson)

What offers/clients cannot use EpsilonTX Spend?

Ø Financial Services clients cannot use EpsilonTX Spend Ø Offers that imply knowledge about the audience are not allowed Ø Offers of credit cannot be promoted to a EpsilonTX Spend audience

MSA

Ø Master Services Agreement - Overarching agreement between Epsilon and the client that maps out basic legal terms and conditions for Epsilon to provide services to a client

What are the competitive advantages of EpsilonTX Spend vs. other providers?

Ø Multi-Sourced Data - Other similarly sourced data typically comes from a single source provider which could cause audience bias Ø Customer Append Supported - Data can be appended to customer records and utilized to support multi-channel customer insights and segmentation Ø Support Multi-Channel Campaigns - Integrated Offline / Online campaigns supported to ensure audience persistency Ø Linked to TotalSource Plus - Audience can be refined/profiled even further by applying or appending additional variables from TSP to the audience Ø Exclusivity - EpsilonTX Spend data is exclusively available at Epsilon

What are niches?

Ø Niches are considered part of the Demographic dimension on TSP Ø Niches separate the TotalSource Plus file into life stage and economic groups using 5 major compiled drivers, including: economic activity, presence of children, home ownership, age and income. Ø Classifies all TotalSource Plus households using household-level data. Ø Every household is assigned to one (and only one) of 26 Niche codes or 108 SuperNiche codes. Ø SuperNiches are hierarchical (e.g., SuperNiches A1 & A2 roll up into Niche A (Already Affluent). Ø Niches and SuperNiches are mutually exclusive (e.g., Niches B, C and D do not overlap each other). Ø Use case: Niches are widely distributed via TotalSource Plus platforms. They are useful in profiling, segmenting and targeting offers (versioning).

What is Shopper's Voice?

Ø North America's largest self-reported database, providing unique data directly from consumers. Survey respondents are an opted-in and highly responsive audience for marketers to reach across all channels. Ø All Shopper's Voice respondents take the survey on an online hosted site Ø Offers unique insights into consumers because we can ask them directly very specific questions Ø Helps to enhance data in TotalSourcePlus (ex. Market Trends)

What is EpsilonTX Spend?

Ø Powerful multi-sourced transactional data actionable at both the individual and household level. Through EpsilonTX spend, identify and reach your most valuable customers and learn what they spend with you and your top competitors. Ø Collecting credit card transactional data with over 1100+ of the nation's largest merchants and most recognized brands Coverage on over 115MM individual consumers, $2.4 Trillion in consumer spend, 40 billion transactions

What is Royalty data?

Ø Royalty elements are those that have a specific contract between Epsilon and the source provider of the data that requires we pay a premium each time the data is sold to a client. There is often special requirements or restrictions on the data as well, so we recommend that you look at the client and use case to ensure it can be supported with that data element. We also limit discounting on Royalty elements since we have fixed costs associated with this data.

How does SV differ from our other data assets?

Ø Stable - single sourced, not compiled or derived, self reported Ø Fresh up to date data - no perpetual flags, time stamped survey responses Ø Privacy Policy - 1st Party opt in Ø Transparent - what you the consumer sees is what the client gets Ø Flexible - expand or tighten the lookback window or targeting Ø Granular and Unique - some elements are unique to Shoppers Voice, others can be used to augment when combined with TSP.

SOW

Ø Statement of Work covers the terms and conditions for a specific product the client is working with us on. SOWs typically link to the MSA we have executed for the client.

RPA Models (Response Predictive Analysis

Ø Statistical model that analyzes the client's recent mailing campaigns. Requires the client send in a list of all prospects mailed in a specific campaign and the subset of those that responded during the campaign timeframe.

What is the Data Dictionary?

Ø The data dictionary is a guide that maps out all the elements of data available on consumers and households within TotalSource Plus. The most up to date version is always available to the sales teams via Epicenter. Ø The data dictionary will map out exactly how elements are selected, what use cases are supported and how the data will be delivered back to the client.

How often is TotalSource Plus updates?

Ø The database goes through an update every 6 weeks

What is a select cap?

Ø This is a discount that can be activated on a client by client basis to help negotiate price. It allows the sales person to "cap" the amount paid for selects coming out of a single dimension of data. · Charged in addition to the base price · Select Caps Do Not include Aliments or Royalty data · Premium elements are included in the Select Cap (separate line items) · Select Caps apply to the entire dimension o You cannot pick and choose selects to include in a cap Select Caps apply to select and output

CPA Model (Customer Predictive Analysis) -

Ø This is a look-a-like model that profiles the customer sample file to TSP and finds prospects that mirror those customers

What is ValueScore?

Ø ValueScore is found within the Financial dimension of TSP. Ø ValueScore ranks households within TSP based on their marketing value (propensity to pay when given a payment plan option). § Segments good and poor payers based on Epsilon's vast database of U.S. consumer information § Determined by household demographics and lifestyles § Twelve (12) marketing value categories: A1, A2, B1, ..., E1, E2, E3 § New industry specific versions · Auto Finance · Retail Card · Credit Card