Paul Demery

-Retailer will use customer-focused marketing solution to capture, manage and optimize customer data-

BILLERICA, MA – May 2, 2005 – Harte-Hanks, Inc. (NYSE: HHS), a worldwide, direct and targeted marketing company, today announced that Stage Stores, Inc., a Houston, TX-based regional department store retailer, will implement Harte-Hanks Allink® Retail, a customer-focused database marketing solution, in an effort to optimize customer relationships and to increase profitability.

Stage Stores operates 537 stores across 29 states. As part of the implementation, the retailer will utilize Allink Retail`s integrated customer relationship management (CRM) functionality to gain greater visibility into customer data; develop a better understanding of its customers` wants and needs - thereby supporting merchandising, pricing and product bundling efforts; building loyalty among its existing customer base; and driving new sales by identifying and acquiring new customers.

"To meet our overall business objectives, Stage Stores needed to extend its existing CRM capabilities," said Dan Singer, vice president of database marketing, Stage Stores. "Our marketing had evolved to a point where we needed to support more frequent database updates, delve more deeply into customer data, support trigger-based campaign management and allow for integration with our point-of-sale system."

"The retail industry is highly competitive, particularly in this time of market consolidation," Singer said. "To be successful, companies must exceed consumer expectations faster and more effectively than the competition. Harte-Hanks has the long-standing retail experience, database expertise, and reputation for delivering consistent results that drive sales that will help us not only to meet our CRM objectives, but also to compete more effectively in our market."

"Stage Stores will gain a flexible solution that will grow with the company, and will continue to benefit from the data-driven marketing approach, in-depth retail experience and the highest level of ongoing support inside Harte-Hanks," said Kathy Calta, corporate officer and senior vice president, Harte-Hanks, Inc.

"The retail industry currently faces the challenges of expanding distribution channels and an increasing number of competitors contending for consumers` loyalty," Calta said. "Allink Retail is designed to provide companies with a competitive edge by helping them to better identify their most profitable customers and build more relevant and effective multichannel relationships to optimize ROI."

About Allink Retail

Allink Retail is designed to address the many challenges retailers face today in acquiring clean, relevant, and timely customer information, and maintaining a complete, accurate, and consolidated view of customers. The solution provides the integrated CRM functionality needed for data capture, data quality, data management, data access and ongoing support. Specific benefits for retailers include:

• Know Your Customers –Expert-driven analytics extend segmentation and model-building capabilities to include attributes such as historical purchase behavior, lifestyle and demographics.

• Increase Customer Loyalty – Provides high-impact business rules and marketing-event triggers to recognize and respond to customer behavior with timely and relevant communications, often signaling and preventing customer attrition. Facilitates development, execution and management of targeted promotions such as "most-valued customer" promotions.

• Facilitate Multichannel Marketing – Centralizes data from stores, Web site, catalog and divisions, and customer service centers for better decision-making and custom interactions.

• Understand and Measure Marketing Impact – Provides up-to-the-minute reports segmented by territory sales, location or SKU – a critical feature for time-sensitive shopping periods or sales.

• Boost Cross-Sell and Up-Sell Results – Fosters on-demand marketing communications to prompt one-to-one customer experiences at the register, Web site, call/contact center and more, enabling sales associates to identify and offer valued customers personalized offers or exclusive store sales.

• Manage Promotions and Special Events to Drive Store Traffic – Campaign management coordinates complex programs across divisions, partners, and/or departments and aligns them with the retailer’s enterprise-wide merchandising goals.

About Stage
Stage Stores, Inc. brings nationally recognized brand name apparel, accessories, cosmetics and footwear for the entire family to small and mid-size towns and communities through 537 stores located in 29 states. The Company operates under the Stage, Bealls and Palais Royal names throughout the South Central states, and under the Peebles name throughout the Mid-Atlantic, Southeastern and Midwestern states. For more information about Stage Stores, visit the Company`s Web site at www.stagestoresinc.com.

About Harte-Hanks
Harte-Hanks, Inc., San Antonio, TX, is a worldwide, direct and targeted marketing company that provides direct marketing services and shopper advertising opportunities to a wide range of local, regional, national and international consumer and business-to-business marketers. Harte-Hanks Direct Marketing improves the return on its clients’ marketing investment with a range of services organized around five solution points: Construct and update the database – Access the data – Analyze the data – Apply the knowledge – Execute the programs. Visit the Harte-Hanks Web site at http://www.harte-hanks.com or call (800) 456-9748.


Customer analytics, Customer attrition, Customer experience, Loyalty business model, Sales