WHY Yellow Pages?
The Truth About What Drives Usage Dr. Dennis Fromholzer, President CRM Associates
Most Important Facts to Know About Yellow Pages: • Yellow Pages only gets used by people that have money and are ready to spend that money. • When people don’t shop, they don’t use Yellow Pages. • 80-90% of Yellow Pages usage is driven by “life events.” • Typical Yellow Pages purchase amount is $800.
Reality vs. Perception Metro Areas: • •
Reality
71% use Phone Books 80% perceive everyone else uses the Internet only.
Rural Areas: • 88% use Phone Books • 69% perceive everyone else uses the Internet only
Source: Market Authority, 2012
Use Phone Book
Perception
Why such a divergence between reality and perception? Yellow Pages’ Strength is its Weakness
Life Events Drive Yellow Pages Usage Event First Child is Born Make Last Home Mortgage Payment Get Married Youngest Daughter Get Married
Serving in the Armed Forces or Reserves Oldest Child Enters School Separated / Divorced Buy New Home Youngest Child Leaves Home Mover Retire or Take Early Retirement Grandchild is Born Make Major Home Improvement
PYP Usage
314 296 291 282 262 260 254 251 240 237 212 175 159
(Index, Online 100=Average) Purchase
112 112 111 99 139 115 94 137 119 97 99 104 134
80-90% of personal Yellow Pages usage is from people experiencing major life events. Source: Simmons 2011
Yellow Pages is NOT a daily-use medium • Because of life events: – – – –
No routine “heavy” users Usage is EPISODIC 9 out of 10 that go to Yellow Pages will make a purchase. Most customers are new
– Highly targeted, ultimate “point-in-time” medium • But also explains why most users can’t remember the last time they used Yellow Pages.
Yellow Pages Users Are Valuable Customers
• Yellow Pages users spend 25% more than the average customer • Examples: Books Contractors Carpet Dealers Cruises Fences Furniture 71% Lighting Fixtures Pizza Roofing Contractors Source: Simmons 2011
14% 86% 75% 21% 36% 29% 53% 15%
1st Rule for Successful Business: FOLLOW THE MONEY!!
Most Important Question to Ask Businesses:
Who Is Your Ideal Customer? (i.e., who spends the most money?)
Those with the Most Money Use Print Yellow Pages the Most
Baby Boomers set to inherit $11.6 trillion. Sources: CRM Associates; 2011 Consumer Expenditure Survey, Market Authority 2013
Those over age 45 spend the most on most major Yellow Pages categories
• People over age 44 account for 63% of total spending with businesses. • People ages 45-54 typically spend 2.9 times more than people ages 18-25 Sources: 2011 Consumer Expenditure Survey
What About the Younger Generation? Those under 30?
1. Who Cares? – They don’t have any money!! • • • • • •
18.1% unemployment rate among 18-24 yr-olds. Average income of $27,000 vs $62,000 for all adults. 85% are renters (vs. 34% for total population) Majority move back in with mom & dad after college Education debt now exceeds credit card debt Consider: All consumer units Household Maintenance Household Operations HH Furnishings, equip Auto Maint/repairs/insur Life & other Insurance Source: 2010 Consumer Expenditure Survey
$1,112 $1,007 $1,467 $1,797 $ 318
Most Important Facts to Know About Yellow Pages: • Yellow Pages only gets used by people that have money and are ready to spend that money. • When people don’t shop, they don’t use Yellow Pages. • 80-90% of Yellow Pages usage is driven by “life events.” • Typical Yellow Pages purchase amount is $800.
Reality vs. Perception Metro Areas: • •
Reality
71% use Phone Books 80% perceive everyone else uses the Internet only.
Rural Areas: • 88% use Phone Books • 69% perceive everyone else uses the Internet only
Source: Market Authority, 2012
Use Phone Book
Perception
Why such a divergence between reality and perception? Yellow Pages’ Strength is its Weakness
Life Events Drive Yellow Pages Usage Event First Child is Born Make Last Home Mortgage Payment Get Married Youngest Daughter Get Married
Serving in the Armed Forces or Reserves Oldest Child Enters School Separated / Divorced Buy New Home Youngest Child Leaves Home Mover Retire or Take Early Retirement Grandchild is Born Make Major Home Improvement
PYP Usage
314 296 291 282 262 260 254 251 240 237 212 175 159
(Index, Online 100=Average) Purchase
112 112 111 99 139 115 94 137 119 97 99 104 134
80-90% of personal Yellow Pages usage is from people experiencing major life events. Source: Simmons 2011
Yellow Pages is NOT a daily-use medium • Because of life events: – – – –
No routine “heavy” users Usage is EPISODIC 9 out of 10 that go to Yellow Pages will make a purchase. Most customers are new
– Highly targeted, ultimate “point-in-time” medium • But also explains why most users can’t remember the last time they used Yellow Pages.
Yellow Pages Users Are Valuable Customers
• Yellow Pages users spend 25% more than the average customer • Examples: Books Contractors Carpet Dealers Cruises Fences Furniture 71% Lighting Fixtures Pizza Roofing Contractors Source: Simmons 2011
14% 86% 75% 21% 36% 29% 53% 15%
1st Rule for Successful Business: FOLLOW THE MONEY!!
Most Important Question to Ask Businesses:
Who Is Your Ideal Customer? (i.e., who spends the most money?)
Those with the Most Money Use Print Yellow Pages the Most
Baby Boomers set to inherit $11.6 trillion. Sources: CRM Associates; 2011 Consumer Expenditure Survey, Market Authority 2013
Those over age 45 spend the most on most major Yellow Pages categories
• People over age 44 account for 63% of total spending with businesses. • People ages 45-54 typically spend 2.9 times more than people ages 18-25 Sources: 2011 Consumer Expenditure Survey
What About the Younger Generation? Those under 30?
1. Who Cares? – They don’t have any money!! • • • • • •
18.1% unemployment rate among 18-24 yr-olds. Average income of $27,000 vs $62,000 for all adults. 85% are renters (vs. 34% for total population) Majority move back in with mom & dad after college Education debt now exceeds credit card debt Consider: All consumer units Household Maintenance Household Operations HH Furnishings, equip Auto Maint/repairs/insur Life & other Insurance Source: 2010 Consumer Expenditure Survey
$1,112 $1,007 $1,467 $1,797 $ 318
