RRW Consulting's Direct Marketing Blog

Email Marketing to the Millenials

2009-05-14T20:00:00.000-07:00

Understanding generational differences and what it means to marketers is a topic that continues to fascinate me.

See this article from B2B Magazine, called Marketing to Millenials. It's a concise read on how the Millenials (sometimes called Generation Y--people born before 1982) perceive email marketing, and includes tips on what works with this group. Perhaps more importantly, it provides insight into what doesn't resonate with Millenials.

The two tips that I found most interesting:

1. Create “automated relevance.” Behavioral marketing works, but when you’re marketing to Millennials, you’ve got to be faster and more precise, Wilson said. “Millennials are almost wired to block out advertising and marketing. They are capable of finding what they want when they want it, so you have to be fast and give them something relevant as soon as you see a specific ‘hand-raising’ activity,” he said.

2. Get personal about the right things. There are differences in what you’ll need to know to market to Gen X, for example, and Gen Y. For one thing, Gen Y is less likely to answer personal questions about what they buy and why, Wilson said. “I’m amazed at how often marketers ask people about the wrong things,” he said. “If you can ask questions in a genuine way, you’ll get answers, though.”

Instead of asking how Gen Y thinks about and uses your products and services, Wilson said, ask about what’s important to them instead. “Instead of asking which products are important, ask what’s important to them in the buying cycle. Is it having a personal reference? Ask how often they purchase rather than what they are purchasing.”

Good stuff!

If you'd like an overview of the five living generations, it's your lucky day :)

RRW has put together a White Paper that provides traits and differences between generations, called Generations Overview (catchy name, eh?). We'd be happy to share.

Unsolicited B2B Email - SPAM or Not?

2009-02-09T19:00:00.000-08:00

Ever since CAN-SPAM came out, I've been struggling to answer this question:

Since unsolicited email to business-people is not prohibited by CAN-SPAM regulations, is this a viable lead-generation activity, or is it something that we direct marketers should steer clear of?

Is it SPAM, or not?

The industry seems to be handling this a few ways. Many of the leading data firms (such as Experian and Acxiom) will not append email addresses to prospect lists; they'll only append emails to customer files, citing their strict focus on consumer privacy and compliance.

And, some providers of email marketing services first send an email to their list warning recipients that they're about to receive an email from Company X. This step allows the mail recipient to opt out of a specific offer.

On the other extreme, you see news stories like this one from Direct Magazine. The story outlines how one email list company may (or may not) have stolen a list of conference attendees and is now selling the file. The accused company claims that they legitimately collected the email addresses and have every right to sell them. Hmmm. Sounds fishy to me.

So, what say you? Is unsolicited B2B email--emails to people who you don't know--something that you support? Do you have any success stories? Horror stories?

Small Businesses Concerned with Economy...

2009-01-12T07:45:00.000-08:00

For some reason, this article really brought home today's economic reality. The article presents results of a recent survey of small businesses. Essentially, it talks about how concerned small businesses are with the state of the economy. It reiterates how the economy has had a huge impact on this sector, in particular.

The survey found that 66.4% of small business owners have been affected for
the worse by the recession -- and that a full 80% see the economic crisis as the
primary mandate for the new government.

Small business is the backbone of the U.S. economy representing 99.7% of all employer firms, and generating 60 to 80% of new jobs annually over the past decade, according to the Small Business Administration.

Perhaps this news, in particular, resonates because my small business has also been negatively impacted by these trying times. RRW has a focus on providing direct marketing solutions to financial services firms--an industry definitely hit hard by this economy. Our business has suffered.

You know what? I'm mad. I'm sad that I lost a business partner and feel for some clients who've either had their marketing budgets cut dramatically, have laid off a good portion of their staff, or (in the extreme) have gone out of business entirely.

Yet, I cannot even imagine thinking that someone out there will magically appear and throw money at RRW. As much as I'd like to, I cannot think that there my fairy godmother will show up with her magic wand and a purse full of clients with huge budgets.

So, hearing about huge companies looking for their fairy godmother in the form of our tax money simply irks me.

OK, I'll get off of my soap box and start the day. I'll get back to work and come up with a value proposition, a direct marketing idea that one of my smart clients will pay for. Isn't that the way this country works?

Case Study: Sweepstakes and Mobile Marketing

2008-12-30T08:39:00.000-08:00

Publishers Clearing House (PCH) is one of the longest lasting direct marketers around. I don't think there's an American out there who hasn't wished and dreamed that Ed McMahan and team would show up on their doorstep with a giant check for millions of dollars. This visibility and recognition is a true testimony to Publishers Clearing House's longevity and marketing ability.

Whether you're a fan of sweepstakes or not, I don't think that anyone can argue that this direct marketing expert, PCH, has used sweepstakes successfully over the years. What's more, they've been able to expand beyond direct mail (and they were darn good at getting consumers to open their mail and interact with their piece); PCH has embraced a true multi-channel strategy.

Well, now they're jumping into Mobile Marketing, and with a vengeance. My opinion: when PCH decides to use a new channel, it's probably time for all direct marketers to take note and learn some things.

Take a look at this article from Mobile Marketer: Publishers Clearing House outlines 2009 mobile strategy

Publishers Clearing House, a longstanding sweepstakes giant using the direct mail and TV channels, is targeting a younger demographic with online and mobile initiatives.

“We are the premier sweepstakes company in the U.S., so people know who we are, but the challenge is maintaining relevance for the changing population that is using Internet and mobile applications more and more,” Alex Betancur, vice president/general manager of the PCH Online Network, Port Washingon, NY.

The article outlines PCH's strategy in developing mobile marketing apps with a focus on entertainment. It also briefly discusses their social marketing tactics. For anyone considering incorporating Mobile Marketing into their direct response mix, this article provides some nice detail.

“It will be interesting to see how it (mobile and social marketing programs) takes, because it’s a different demo, different customers that we’re targeting,” he said. “We are direct response marketers, so we test the waters, and once we get the formula right, we push advertising to make it successful.”

Coupons Work in this Economy

2008-12-04T21:05:00.000-08:00

A weak economy presents challenges to all marketers. How do we do more with less? How do we sell things to people, or companies, who can’t afford them?

But sometimes, this type of economic environment presents unique opportunities for direct marketers. After all, our results are measurable. Marketing costs can be justified by clear, countable results.

This point is highlighted pretty nicely in this recent NY Times article: This Season’s Must-Have: The Humble Coupon

From the article:

The faltering economy could mean renewed interest in coupons as shoppers refocus
on the cost of the products they buy — that is, if they do actually buy anything
these days.

Coupons that offer cents off — or percents off — the price of things like groceries, clothing and restaurant meals are particularly popular when consumers need to stretch their dollars. So word that a recession began last December could bring an increase in the number of coupons offered by marketers, as well as redemption rates by consumers.

“Thrift is the new normal,” said Lance Saunders, executive vice president and head of account planning at Campbell Mithun in Minneapolis, an agency owned by the Interpublic Group of Companies.

“There’s no stigma to getting anything on discount,” Mr. Saunders said. “Instead, there’s a sense of pride.”

The article goes on to discuss unique couponning strategies, from some unusual suspects (high end Lucky Jeans, for example) and more usual suspects (P&G).

It also discusses the use of new marketing channels such as mobile marketing.

New technologies are also helping to renew interest in coupons, especially
for younger consumers. There are scores of Web sites where coupons can be
obtained by clicking rather than clipping; among them are coupons.com,
couponcabin.com, couponcode.com, couponmom.com, 8coupons.com, fatwallet.com and shortcuts.com. Many also deliver coupons by e-mail messages.

And coupons are increasingly available on cellphones and other mobile
devices from companies like Cellfire and Outalot. Among the marketers offering
mobile coupons are Arby’s, Caribou Coffee and GameStop.

An advantage of coupons delivered through new technologies is that they can
be customized and personalized, which could help make them more effective
and efficient for the sponsors.

Ah, trackable, customized and personalized—music to this direct marketer’s ears!

Another lesson learned: even if your marketing strategy has never included couponning, simply because it didn’t seem to be the right fit for your products and/or your customer-base, you may want to rethink that strategy in this economy.

Should the USPS Change its Delivery Schedule?

2008-11-17T15:32:00.000-08:00

I thoroughly enjoyed this article from DM News. It’s all about cost savings ideas for the US Postal Service, with the ultimate goal of keeping postage steady for direct marketers. The article cites two postal mail industry experts who have provided their comments on cost savings efforts.
Specifically, each expert discusses ramifications of the USPS cutting a day of mail service—cutting delivery from 6 times each week, to only 5.

Expert 1: C. Hamilton Davison, Executive director, American Cataloger Mailers' Association

Primary point: Thinks that other options should be considered first—prior to cutting a day of mail delivery. For example, he suggests that the USPS look at closing some branches. He provides an interesting comparison of USPS facilities to McDonalds.

“Do you think McDonald's is everywhere? Well, McDonald's has 21,000 restaurants
worldwide; the USPS has 37,000 retail locations in the US alone. Isn't it
possible that we have too many post offices?”

Bottom Line: Mr. Davison recommends exploring any and all cost savings options if it means keeping the USPS competitive.

Expert 2: William Burrus, President, American Postal Workers Union

Primary point: Mr. Burrus is adamantly opposed to a reduction of mail delivery days.

“If such a reduction leads to an increase in Priority, Registered, Certified,
FedEx, or UPS deliveries, customer costs would increase, and productivity
would decline.”

Bottom Line: He suggests that this change is too radical because it would delay mail significantly, especially in holiday schedules.

“This change would begin the process of dismantling the United States Postal
Service, which is the primary objective of those who advance this terrible
idea.”

My take: I believe that the USPS needs to explore any cost-saving idea it can come up with. In this economy, every single business is exploring ways to save. The USPS shouldn’t be any different.

And, the solution clearly isn’t significant postage increases. I hate to see the direct marketing industry (which is a huge cash cow for the USPS) continually hit by rate increases that seem overwhelming and unfair. Further, taking away a day of mail delivery would not be the end of the world to most consumers who no longer rely on postal mail to receive important personal and business communication.

So, if a day must be cut to keep postal mail flowing, so be it.

Search Engine Optimization - Free Webinar!

2008-11-14T10:40:00.000-08:00

SEO continues to be more of an art than a science, don't you agree? When you find a search expert who delivers measurable results, consider yourself lucky.

That's how we felt when RRW found Daryl Clark of Internet Search Marketing. He not only helped RRW rank higher with Google and the others, but he's the one who encouraged us to start this blog. Now, when you search for Direct Marketing Blog, our tiny firm consistently ranks in the top 5. Pretty cool!

Daryl is doing some amazing work with large and small firms. And, even better, he's offering a free webinar next week to share some of his SEO expertise. Check out his blog for more details.

Case Study: Social Networking

2008-11-10T15:02:00.000-08:00

Today's case study comes to us from Chief Marketer. It's an interesting discussion about how the Broadway musical, First Wives Club is using social networking to build a fan base, and an audience for the musical. What I learned? For the right target market, making the effort to build and manage a social network absolutely makes sense.

Below is the case study in its entirety.

First Wives Club Engages in Social Networking

When you're going through a tough time, you need friends more than ever. And if they an identify with your experiences, even better. FirstWivesWorld.com recently debuted social networking features to help divorced and soon-to-be-single-again women do just that—and have laugh or two in the process..

The venture began when Jonas Neilson and his partner Paul Lambert acquired the rights to produce a Broadway musical based on the 1996 film "First Wives Club."

In the process of reinterpreting the movie for the stage, the duo ran a series of focus groups with divorced women. Unlike typical focus groups, champagne was served.

"It was really kind of interesting, because they were more like cocktail parties," says Neilson, it wasn't long into each session before the ladies were laughing, crying and exchanging business cards. "There was an unspoken bond between the women. They had a commonality which immediately created a sense of belonging to the group."

There was a real need there that wasn't being met online, says Neilson, for women to connect with other people who were going through the same experience.

Over time, the site morphed into a destination for divorced women to find networking, resources and entertainment, such as "Hot Flashes," a fictional blog by Mimi Schmir, a writer who has written for "Grey's Anatomy," that take a humorous look at failed marriages.

While some might think a site devoted to divorce would be maudlin, Neilson says with First Wives World that is most certainly not the case. He says most divorced women he's talked to say they were miserable in the marriage, and the divorce became a shot at a new life.

Neilson says he thinks that the next frontier for successful online communities is taking those relationships offline, into the "real" world.

As for the musical, it will premiere at the Old Globe Theater in San Diego in July 2009, with a goal of hitting Broadway in 2010. Getting the word out via the site is a natural fit since the profile of many users—women who are 40+—dovetails what who buys the majority of theater tickets.

The portal is generating about 100,000 page views per month. Right now, Neilson says FirstWivesWorld.com is concentrating on building an audience, rather than measuring a hard ROI.

"We want to keep the network 'sacred' for women" who are gathering information on how to deal with their divorce, Neilson notes. "We don't want to inundate them with banners. We want them to feel this is their space."

Of course, he notes, that doesn't mean that the site isn't looking for unique ways for sponsors to integrate their marketing messages into the site. It's a good demographic, Neilson says, because at this point in their lives, these women are very open to changing things like brand loyalties.

Ultimately, Neilson says the site will help fund the musical. "Instead of creating the product and then trying to find an audience, we're building the audience first."

Today, it's all about coffee

2008-11-04T07:16:00.000-08:00

So, what's a direct marketing blog doing talking about coffee? Well, it was on my mind today and the more I browsed around, the more coffee news I came up with, and felt the compulsion to share with you.

You've probably all heard about Starbucks' offer to give everyone who votes today a cup of joe. For free. Without requiring any proof of voting. I love that! We've been faced with so much depressing economic news (and don't get me started about the overkill on the election coverage...), that news about getting anything for free, especially one of my favorite things, puts a grin on my face. Kudos for Starbucks for being good to their customers and encouraging us all to vote. Oh, and kudos to them for garnering all of this good press and building customer good-will at the same time.

While I'm on the topic of Starbucks, check out this DM News article about their launch of a new loyalty program. If you spend more than $5/week at Starbucks, you will definitely find value in this card, even though it's not free. You know my take on this, as a database marketer--I'm drooling over the opportunities to mine the customer data and figure out new ways to sell more things and grow customer loyalty.

Here's an overview of the program, straight from the article:

The new Gold program, which goes into wide release on November 4, offers a 10% discount on most in-store purchases. Gold membership costs $25 annually and offers its own card, which users are encouraged to register for additional benefits such as complimentary beverages on their birthdays. Starbucks Card Rewards, the program that launched earlier this year, provides members with free drink customizations and WiFi hours with the use of a pre-loaded Starbucks card.

And, if that wasn't enough coffee news, take a look at this item (also from DM News) that talks about Caribou Coffee's launch of a mobile marketing campaign. I can see how this channel could be ideal for retailers like Caribou--catch your demographic (in this case, they wanted to boost sales to 18-34 year olds) when they're out and about and shoot them a valuable coupon ($1 off a large drink). Nice application of mobile marketing, wouldn't you agree?

So, there you have it, an update on direct marketing of coffee--with some loyalty ideas thrown in at no extra charge!

Gotta go--need to drink my Venti!

Case Study: Using Analytics to Identify Business Opportunities

2008-10-27T07:23:00.000-07:00

Today's case study comes to us from Sigma Marketing Group, a full-service database marketing firm. They've highlighted work they've done for their client, Greater Rochester Enterprise (GRE) helping them with regional economic development programs. I like this one because it incorporates analytics and cleverly uses data to generate a successful program.

The Challenge
GRE is a regional economic development organization supported by a team of private and public sector leaders dedicated to improving economic performance in the Rochester, New York Finger Lakes region. Its primary goals are to:

retain and expand existing business;
professionally market the region as a competitive, vibrant, and high-profile place for business location and growth;
support business attraction, expansion, entrepreneurship, and innovation by collaborating with local businesses, universities, not-for-profit organizations, and government leaders.

Because of Rochester’s rich history of thriving high-tech companies, GRE determined that the region was best suited to attract three types of industries:

Fuel Cell
Biotechnology
Optics

To that end, they approached SIGMA Marketing Group with the following challenge:
Focusing on these three industries, help us identify companies across the country that are likely to:

Expand operations
Consider Rochester as a potential site for expansion

The Breakthrough
SIGMA developed an analytic-based direct marketing program with the following methodology:

The Lists: Build search criteria, customize lists from a variety of sources, then target decision-makers in the three industries across the country.
The Mailer: Create a cost-effective, compelling direct mail piece that includes specific information on why the company should consider Rochester for its expansion needs. Specifically, SIGMA created bi-fold brochures that were customized for each industry.
The Data: Include an attractive offer in the piece that would entice the recipient to:

Log onto a new GRE Web page

Provide self-reported data via a simple online questionnaire

The Offer: For those recipients willing to go to the site, GRE provided them with:

A free S.W.O.T. analysis (Strengths, Weaknesses, Opportunities, and Threats) written by a leader in the recipient’s industry.

A link to a website that allowed recipients to choose amongst several business-related gifts or charitable contributions.

The Analytical Model: SIGMA then created a model that analyzed the results into three categories:

Alert: These are highly qualified prospects who should be called immediately.

Semi-Alert: These are qualified prospects who should be called within 30 days.

Future Contact: These prospects are not qualified for immediate follow-up, but should be contacted on an as-needed basis.

The Win
“SIGMA designed an effective direct mail campaign that yielded double our projected response. In addition, the self-reported data incorporated in this campaign delivered insightful quantitative research that has helped us further refine our marketing efforts.”

Direct Marketing Links

2008-10-24T07:05:00.000-07:00

TGIF!

As always, I'm happy to bring you some of the articles that I found interesting this week.

How to Win the Social Marketing War
OK, I'm not sure I would categorize social marketing as a 'war', but author Pete Kulenek posts a nice summary of how businesses can/should include social activities such as Facebook and My Space in their marketing mix to help build traffic to your website. Learning: The key is to adopt this simple “5 H’s” approach:

Humor
Honesty
Have fun
Help people

Works for me!

Being Multichannel
Speaking of channels, take a look at this thought-provoking post from Kevin Hillstrom. He talks about how difficult it can be for marketers who practice in a variety of channels to truly dominate any one given channel. His advice (paraphrased by me, of course): focus on the customer and deliver the content and useful information that the customer needs. Make it easy for the customer to find you and figure out ways to 'pull' the customer to you as opposed to pushing tons of messages to her.

What went wrong with the market...
As a businessperson who's worked with the mortgage industry (yikes!) throughout all of my years of marketing, this post by Sandeep Giri hit a tad too close to home. He's provided a tongue in cheek explanation of today's current economic woes. Check it out for a laugh (and maybe some cries, too).

Now Be a Ninja!
For those of you out there who religiously measure your blog with Google Analytics, you'll appreciate this information from Avinash Kaushik. He explains some new releases from Google, including their advanced segmentation. I'll definitely take the time to explore these new features.

Mobile Marketing Advice

2008-10-22T11:29:00.000-07:00

I continue to struggle with ideas on how to incorporate mobile marketing into my direct marketing tool-box. Specifically, I’m having a hard time getting my arms around practical applications, and thinking of real-life ideas that will benefit my clients. Yet, this is an industry that is huge and growing. Mobile marketing is a channel to be reckoned with and maximized for the right opportunity.

This article from DM News provides some interesting insight. The article presents four different viewpoints and tips on how to make mobile marketing work—how to incorporate this channel into your marketing mix.

The first tip is from David Spear, EVP of sales and marketing, mobile technologies, LSN Inc.

Takeaway: With mobile Web campaigns, it's best to keep the design elements simple

“Whether a campaign is designed to drive brand awareness, deliver knowledge or influence direct response, it must be easy for the subscriber to understand, engage and extract value from it. Make sure you consider all elements when reviewing a campaign for simplicity. If the campaign is designed to be simple and straightforward, then traction will follow and viral will grow organically and successfully. If the campaign is overly complicated, it will disappoint in almost every aspect.”

The next tip, recommending Short Message Service (SMS), also known as text messaging comes from Steve Siegel, VP of brand solutions, HipCricket. His reasons for SMS are pretty compelling:

The reach of SMS—everyone uses text messaging.
The ability to measure results (you know I love this benefit!)
SMS allows for remarketing opportunities
SMS can be used to gather important data points from consumers (another benefit I love!).

Next, Bryan Morrison, President, Ipsh, brings us great information about mobile marketing’s ability to exploit proximity strategies. He says: “Proximity is the concept that makes mobile special.”

“While the Internet forced marketers to learn interactivity, mobile layers context on top, making your location the most important benefit the medium can offer. Understanding proximity allows brands to provide consumers genuine utility in their day-to-day lives.”

Just consider the possibilities—retailers can offer you coupons or special offers, at the point in time that you’re entering the mall! Timely, and valuable to consumers.

Finally, Michael Chang, CEO and co-founder of Greystripe, offers insight into the benefits of in-game mobile marketing—essentially embedding your advertising within a game people play on their mobile device (phone). More info on this concept, from the article:

“In-game ads are primarily priced on a CPM basis, reflecting the strong branding opportunities available from full-screen ads and rich data-gathering features. Pricing is also impacted by targeting. As with WAP banners, regional targeting is almost always available, and some providers offer more refined targeting such as by carriers, types of handset, or based on user demographics.”

“Advertising in mobile games provides bigger and richer ads than SMS or WAP banners, as well as a positive brand association for the advertiser. In-game advertising offers unique features, a great user experience and allows advertisers to benefit from a positive association with fun mobile content.”

Hopefully, these four unique perspectives have shed some light on practical applications of mobile marketing. I know that they’ve given me some great food for thought!

Case Study: Alltel, Acxiom & A Marketing Database

2008-10-20T18:56:00.000-07:00

It's Monday, and that means it's time for a direct marketing case study. This one comes to us jointly from Acxiom and Alltel Wireless. (Check out this link for a podcast on same topic, plus the opportunity to sign up for the full case study).

Customer Lifecycle Management

When Alltel Wireless engaged Acxiom to improve the precision, relevance and sophistication of its direct marketing communications, the company’s siloed sources of customer data and limited prospecting data were restricting their abilities to engage with customers and prospects. Acxiom worked closely with the Alltel Wireless team to deliver a set of solutions that anchored the entire campaign process. Acxiom combined its data products and customer intelligence with Alltel Wireless customer data and prospect list for targeted segmentation based on actual customer behavior and real household composites.

The Opportunity
Alltel Wireless wanted to increase customer acquisitions, improve retention and grow customer revenue with more targeted, relevant communications.

The Solution
Acxiom’s marketing database solution assisted in driving two top objectives:

New customer growth
Reduction in customer churn

The Results
265% increase in incremental customer postpaid additions tied to direct marketing efforts. “My Circle” campaign gross take rates exceeded 6% from existing customers. Direct customer communications have increased 285%.

Wow--pretty great results! Truly illustrates the power of a database.

DMA Recap

2008-10-16T08:30:00.000-07:00

Home from Vegas. Phew! Good to be home, for sure.

I thought I would wrap up my commentary on the annual Direct Marketing Association's conference by sharing some of the highlights.

1. DMA's self-reported biggest accomplishment this year: the creation of a Do Not Mail plan. See the following from an article on DMA's website:

Rappaport (Donn, outgoing chairman of DMA's board of directors), who is chairman/chief executive officer of the American List Counsel, Inc. (ALC), began by highlighting the Board’s efforts to combat proposed state Do Not Mail legislation. “This year, the DMA Board marshaled all our collective talent, energy, and experience to forge a Do Not Mail action plan to tell our story to Congress, to the media, and for the first time ever, directly to the consumer."

2. Direct marketer of the year: Ebay. Last year Microsoft got this honor.

3. From John Greco's (DMA's President and CEO) opening keynote address, where he speaks about the state of the industry:

Here’s DMA’s estimate of the size of the entire direct marketing pie — well over two trillion dollars worth of sales this year, driven by direct marketing offers across all the addressable, interactive, direct response channels.

Sales driven by Internet and email marketing will exceed $500 billion this year. That number has grown very quickly over the past year. At the same time, a total of more than $702 billion of sales is being driven by the mail channel — including nearly $155 billion in catalog sales. Telephone marketing accounts for another $364 billion in additional sales, and direct response advertising in newspapers, television and other media drive $451 billion more in sales this year.

He goes on to discuss direct marketing accomplishments such as a focus on recycling. The entire transcript of his speech can be found here.

4. Theme of the DMA: "r u Connected?" Personally, I find this kinda juvenile--but that's just me...

5. Expected number of attendees: 12,000 (not sure that this many actually made it).

6. Best party: OK, I only attended two this year... But, I'll give the award to Experian and their nightclub experience at Pure in Caesars Palace. You have to agree that the projection of their name on the side of the casino was pretty cool.

Update from DMA!

2008-10-13T08:14:00.000-07:00

It's Day 2 of DMA and I still have most (well, some) of my brain cells.

Arrived in Las Vegas yesterday. Cold and dry weather. Lots of traffic and people. Too much walking (but, that casino 3 miles away looks so close...). I dropped $10 in video poker, but won it all back. I'm such a high roller :)

Attended the opening exhibit hall session yesterday afternoon. My immediate impressions were: the show was quiet and MUCH smaller than years past. I'd say a good 1/3 fewer exhibitors. And, the big firms didn't have the same level of ostentation--you know the huge, crazy booth spaces. Of course, we can't blame anyone for scaling back in this economy. The other odd thing, I didn't hear of a single party held last night (Sunday). Did I miss something good?

There were some positives, though.

Good vibe. People were actually stopping to talk to exhibitors. I saw a lot of conversations going on.
New vendors. I've already met some new providers to the direct marketing industry, and I'm looking forward to meeting more.

So far, I've made my way through about 3 of the approx. 12 aisles of vendors. Some interesting companies I spoke to: Boingnet (offers personalized URLs on the cheap) and Jigsaw (they compile business information from business cards, allowing marketers to hone in on those hard-to-target industries and titles).

As always, I enjoyed my time at the Acxiom booth watching their famous magician (they've had this guy for over 10 years, and he's simply amazing--nice, too).

Well, I'm off for more DMA action. I'll be meeting many more firms today and I'd love to hear comments from others here at DMA with their discoveries, too.

As a bonus, check in tomorrow for an update on the two big parties: Experian and Acxiom!

Direct Marketing Links

2008-10-10T09:51:00.001-07:00

Another Friday is upon us, and that means it's time for me to share some of the interesting articles I found this week.

Why People Buy - Online
Let's start out with a new blog I was happy to find this week: Direct Dispatch from Haggin Marketing. This article talks about what consumers value must when they're shopping online. It's surprisingly different than what we value when we shop in a physical store. The article also presents a list of the 50 retailers who are doing it right, online. It's no surprise that Amazon tops that list.

Marketing Professor Adopts Radiohead Business Model for Textbook
You know I'm a sucker for interesting price plans. And, like most people out there, the word Free is one four letter word I LOVE to hear. That's why I got a kick reading this article about a professor who is letting his students pay what they will for his book, the required course reading.
And, he's letting them set the price AFTER the course is complete. Love this concept, and hope to hear results of this pricing experiment.

Social Media/Networking a Marketing Flop
I couldn't agree more with one of my very favorite people, Lewis Green. On his blog that focuses on how to grow business while keeping people first (love the concept, don't you?), he tackles the issue of social marketing and discusses how failures in this area can often be due to companies not aligning their social media efforts with the overall corporate marketing strategy. Just makes good sense.

When you go the extra mile
Customer service is so darned important. And, it can be the one differentiator you may have. Good service can help keep your company strong (or at least keep you stronger than your competition) in bad economic times. This post from Andy Sernovitz's Damn! I wish I'd Thought of That! blog brings this point home. Good read.

The Future of Debates vs. Dialogs
From the Note to CMO Blog, this post got me thinking. The author makes a valid point that there is so much content out there, and asks the question: are people really reading and discussing, anymore? He contends that "there is a growing shortage of conversation, with only massive parallel monologues taking place." Excellent food for thought.

Eliminating the Pain from CRM Implementation

2008-10-08T09:05:00.000-07:00

I can't tell you how many articles I've read throughout the years that provide advice on how to make CRM technology implementation less painful. I've posted on this topic a few times myself, right here on this Direct Marketing Blog. It begs the question: why can't some smart firm come up with a solution here?

Regardless, since CRM implementation (and the pain associated with it) remains a 'hot' topic, I thought I would share some tips from this Inside CRM article titled: 10 Ways IT Managers Can Make CRM Implementation Painless.

I've listed each of the tips below, but you can read the full article for more detailed explanations and suggestions.

Watch your alignment. In other words, start at the top and make sure your CRM efforts match your business goals.
Spread the word. To hook CRM applications into a company's core products and services, IT managers will likely have to beat multiple drums in order to be heard.
Sell it to the sales department. While end users across an organization must commit to diligently using and updating CRM systems, success may well depend on the acceptance level of the sales force.
Root for the home team. End users are not the only ones who will likely be in need of constant CRM coaxing. To best lead a staff to CRM victory, IT managers must constantly champion attainable corporate goals.
Stay ahead of the curve. Along with keeping the team happy, the most effective IT manager will work constantly to keep up with an industry known to change at warp speed.
Change from the inside out. External factors are not the only change agents at work. IT leaders will also want to ponder the internal impact of a new CRM system.
Raise the bar. Regulatory matters and other factors up the ante. Thus, IT managers must make sure that major decisions surrounding CRM initiatives are not relegated to those toiling in the trenches.
Visualize results and use carrots instead of sticks. The most capable CRM managers are high-level leaders, who are hyper-aware of CRM’s ability to shape an organization.
Take it on the run. In order for the sales staff or other departments to use CRM to get to know customers better, users will likely need a way to tap CRM applications remotely.
Pick your battles. Without question, a CRM initiative is laden with snags that can challenge even the best IT manager. Hence, a significant number of organizations chose to pass the lion's share of the chore to outsourcers.

Direct Marketing Employment Projections

2008-10-07T08:37:00.000-07:00

You know I hate to add to the economic doom and gloom news... But, I guess it's no surprise that the most recent Bernhart and Associates survey reports: Direct Marketing Industry Cutting Back Sharply On Hiring Plans.

Direct marketers are coping with the slumping economy by making deep cuts in their hiring plans for the remainder of 2008, according to the latest Bernhart Associates employment survey. "Every one of our major employment indicators showed significant declines compared with summer and now stand at their lowest levels since the survey began 8 years ago," said Jerry Bernhart, owner of Bernhart Associates Executive Search.

There is a slight bright side to this story, however.

"Despite the gloomy outlook, nearly one-third of survey participants are still hiring and most don't have a hiring freeze," Bernhart added. "Certain job categories are holding up much better than others." When asked what positions employers intend to fill during the coming fourth quarter, Bernhart said sales and analytics dominated the list.

Marketing is always hit hard when the economy softens. Typically direct marketers are a tad safer than other disciplines that aren't able to justify their activities with hard facts--numbers and results. Yet, this news is disturbing.

It will be interesting to gauge the mood at the DMA conference next week (that is, if anyone shows up...). Look for live reports from DMA on this blog!

Case Study: Contact Management

2008-10-06T09:17:00.000-07:00

First of all, some personal business! Our wedding was perfect--very romantic and beautiful. It was so nice to spend time with family and see old friends. Maui was pretty awesome, too.

But, believe it or not, I missed posting to this blog and it's good to get back into the swing of things. It's Monday and time for a direct marketing case study. I thought I would build on the concept of B2B lead management practices that I reported on last month. Today's case study comes to us from Direct Alliance, a firm that provide business process outsourcing (BPO) competencies in sales and marketing. It highlights how important analytics can be in understanding and impacting customer behavior (a concept that I firmly believe in).

Description
Customer analytics results score big with client and drives improved targeting and increased sales.

Business Challenge
The Client is a world leader in developing, manufacturing, and supplying printing solutions. Faced with increasing direct competition, the Client needed a cost-effective customer management strategy that would enable them to better understand and anticipate customer decision-making and buying behavior. Specifically, they wanted to understand the effectiveness of their marketing campaigns, determine their market position by type of business–such as small-medium and large enterprise–, know which products contributed most to their bottom-line financials, and reduce their cost of sales.

Solution
Direct Alliance developed a customer database analytical modeling program to review customer monthly, quarterly and annual purchasing patterns over a three-year period. From this, Direct Alliance developed scoring model to identify customers with a high-propensity to purchase within a specific quarter. The second part of the solution was the development of personalized product offerings to accommodate the customer’s quarterly buying cycle that were supported by personalized electronic direct marketing and call campaigns. Weekly pipeline reviews were conducted to continually evaluate the progress and success of customer contact and sales efforts.

Metrics
The Direct Alliance scoring model predicted customer buying patterns with 90% accuracy and customer touch improved to 100% from an average of 30%. Improved accuracy and effectiveness led to a 98% increase in first quarter revenues vs. only 69% in prior quarter, and buying accounts increased 42% percent year-over-year.

Love, Wedding and Maui!

2008-09-23T07:30:00.000-07:00

It's been a year of changes. Probably the biggest change, and the one that I most look forward to is right around the corner, for me.

I'm getting married next Saturday! To my best friend and love of my life. I'm a happy girl. We travel to California for the wedding and then we're off to Maui.

You can only imagine that it'll be a bit tough to keep up on my blog. Rest assured, though, that I'll be back in action early October with more direct marketing updates.

Aloha!

Case Study: ASPCA and DR Television

2008-09-22T08:42:00.000-07:00

For the right marketer, direct response television can be an excellent channel for lead and sales generation. Or, in this case donation-generation (is that even a correct term?).

Take a look at this DM News article: DRTV shows off new tricks. The article goes into nice detail about short-form verses long-form and articulates the challenges of measuring a multi-channel strategy. I've summarized their program by quoting bits and pieces of the article below.

Background
Television footage featuring adorable dogs, cats and other household pets elicits an emotional response from nearly everyone. So it's no surprise that direct response television (DRTV) has come to play a major role in the marketing strategy of the American Society for the Prevention of Cruelty to Animals (ASPCA), which relies on one-time and monthly donations to fund programs related to animal-assisted therapy, animal poison control, animal cruelty, humane education, legislative services and shelter outreach.

Multi-Channel Challenges
“There's not just one mode of response [anymore],” says Loreen Babcock, CEO of agency Unit 7, which handles a wide variety of DRTV programs. Dealing with multiple call to action options can be challenging, she adds: “We have a pretty good feel for the benefit of having more than one type of communication, but not necessarily the frequency and the timing.”

Michelle Cardinal, CEO and president of Cmedia, agrees that one call to action just isn't enough anymore — today's DRTV campaigns must also drive to a URL. “You won't survive if you don't understand that it's no longer just about 1-800 numbers,” she says, pointing out that DRTV and the online channel used to be on “different planets.” Now, she explains, “[companies need] to bring them together to see how they complement each other.”

Froehlich has seen this firsthand, as the ASPCA's DRTV program has evolved since its inception. “There's been a lot of crossover and multichannel fundraising going on,” he says. But the length and target audience its DRTV spots have also changed significantly, because of the changing television space, proliferation of channels and shifting viewer habits.

Experts emphasize that companies that have made DRTV a central part of their marketing over the years now need to cover all their bases with a broader spectrum of media that can integrate with the DRTV channel. Froehlich insists that the ASPCA now has a “pretty savvy” Web strategy, and that ASPCA's direct mail efforts have improved over the past few years — which he suspects is due to consumers' increased brand awareness from the DRTV program.

“There's that wonderful ‘halo effect,' which is the rub-off that TV brings to aid in the sales of products through other distribution channels,” explains Kirby. “So television educates, informs and creates emotion and impulse, but the consumer may elect to execute the transaction online.” This is why it's critical to link the digital and TV experiences in terms of the messaging and the creative, he continues.

Results
“DRTV is successful when you take a highly complex and emotional problem and offer a simple solution that passionate people can do on their own,” says Steve Froehlich, senior director of direct response at the ASPCA, which has raised more than $40 million since its DRTV program launched in February 2004.

“DRTV still leverages the [dominant] mass medium of our time — television,” Kirby says, pointing out that the channel lends itself to emotion and impulse, which are important elements in making a sale, and it is also accountable. “So, while TV media is very fragmented, DRTV can still build awareness for a brand and make cost of advertising self-liquidating when the product is sold directly to the consumer,” he continues.

“The future is about understanding the relationship between DRTV and online behavior,” Peterson adds. “When you can show direct correlations, that's the endgame for anyone in DRTV.”

Direct Marketing Links

2008-09-19T08:39:00.001-07:00

As always on a Friday, I'm happy to share some of the interesting articles I've been reading this week. Enjoy!

The future
I'm a sucker for predictions of the future, so I was very pleased to find this video that recaps recent developments in computing, including the rise of social media and changes in e-commerce. It also projects out to 2015 (it predicts the demise of the 4th Estate, the press). This is definitely worth a listen.

Snail Mail Goes Digital
Great news for direct marketers. New technology is coming (to be introduced in May 2009) from the US Postal service that will allow businesses to track the movement and delivery of each piece of mail sent. This means that you'll know exactly when a prospect has received your piece, allowing you to time telemarketing or email follow-up precisely. Conversely, if a customer tells you that the 'check is in the mail', you can track their payment and know exactly when to expect it (or verify that, indeed, the check was sent). This technology will be a boon in measurement and tracking. Good news, indeed.

99 Marketing Tips
Speaking of measurement--the Johnson Direct blog (Marketing That's Measurable) is offering a book on how to make your marketing more measurable. At no charge, this sounds like a worthwhile investment :)

Information Arbitrage
Coined by the Marketing Geek's blog (doncha love that name?), the idea of information as a competitive advantage is intriguing. "Information arbitrage is occurring when a marketer takes advantages for his own brand over other brands due to one of three potential arbitrage situations: More Information, Better understood Information, Better used Information." Good food for thought here.

More on Lead Nurturing
The B2B Lead Generation Blog has an excellent post on lead generation and nurturing. It also happens to be an excellent complement to my post on the same topic.

Lead Generation Best Practices

2008-09-17T16:36:00.000-07:00

I've spent a LOT of time this week discussing the mechanics and best-practices of lead generation and lead nurturing programs. Some great conversations with some very bright marketers got me thinking that it was time to highlight this topic in my direct marketing blog.

Take a look at this presentation from Marketing Sherpa, titled "B2B Marketing Fast Fixes: How to Generate and Nurture More Qualified Leads." The presentation provides ten excellent tips and best practices. I've highlighted a few here that I found especially helpful, but I urge you to take a look at the entire presentation, if you're involved with--or interested in--lead generation.

This tip blew me away: "Time Telemarketing Follow-up Calls Better." Essentially, the quicker you can follow-up a web-generated lead, the better. Marketing Sherpa presented results that showed that if a follow-up call is made within five minutes of your prospect completing your online form, you are 85% likely to actually connect with that prospect. Contrast this with what happens if you wait even 30 minutes to make that call. At 30 minutes, the likelihood of connecting with the prospect drops dramatically--to about 10%. Lesson learned: initiate a process where a follow-up call is initiated immediately after the person has registered on your site.

As a direct mail advocate, I was pleased to see this tip: "Add Postal Mail to the Lead Nurturing Process." It's easy to discount direct mail as a channel. Who wants to kill more trees? And let's face it, direct mail is costly, especially when compared to email. But, direct mail can be an effective channel. For example, you can get very creative with format. When done right, direct mail will not only get opened, but it will get noticed and make an impact.

Finally, this tip (a bonus tip, no less!) just makes good business sense: "Identify and Schmooze Evangelists." We all know how hard it is to gain a loyal customer. A loyal customer who not only stays with you, but one who shouts your praises is a rare and wonderful thing. I like the idea of taking the time to figure out which of your customers are evangelists and then treat them like royalty.

In addition to the above, Marketing Sherpa presents ideas about using blogs to generate leads, landing speaking gigs as a way to collect highest quality leads and more extremely useful information.

Good stuff!

Case Study: Office Depot Maximizes Multi-Channels

2008-09-15T08:46:00.000-07:00

I'm always looking for quantifiable results that prove that a message received through multiple channels beats those received from a single channel. The concept of multi-channel marketing just makes so much sense, but it's oftentimes hard to measure. One has to wonder--would that customer have purchased or responded if they had only heard from us through a single channel? Were the extra costs of a multi-touch strategy justified?

Today's case study comes to us, from of all places, Microsoft. They've cleverly measured the impact of various components of Office Depot's online advertising campaign, quantifying stand-alone results and the impact of multiple customer touches.

Background
Office Depot, Inc. is a global supplier of office products and services that sells to 44 countries across North America, Europe, Asia, and Latin America. With a number of sales being processed online, Office Depot wanted to optimize the effectiveness of their online advertising campaigns.

The Challenge
Office Depot teamed up with Microsoft Advertising to conduct a study focused on understanding the brand lift an Office Depot search or display campaign receives when running together with other online channels. They wanted to determine which combinations of search, display, and content ads best drove Office Depot’s brand metrics.

The Creative Solution
The study was conducted among 120 participants who were evaluated with eye-tracking tests and post-session surveys. The participants were exposed to various combinations of Microsoft display, search, and content advertising methods and evaluated for brand metrics like message recall and purchase intent.

The Results
The study revealed that while search, display, and content ads are effective online channels for driving brand metrics, when combined they generate more powerful results. The following chart is the best illustration, I believe of the power of multi-channel marketing.

Office Depot Search Campaign Study
Adding both display and content ad offerings to the search campaign is more effective than adding only one additional channel offering. Results achieved include:

46.5% incremental lift in ad recall
49.1% incremental lift in brand recall
19.7% incremental lift in message recall
21.6% incremental lift in purchase intent

Office Depot Display Campaign Study
Adding both search and content ad offerings to the display campaign is more effective than adding only one additional channel offering.

Multiple exposures through search, display, and content ad channels translate into 2.41 times the amount of user interest (measured in relative fixations and gaze time) over search alone. Results include:

20.8% lift in ad recall
45.0% in brand recall
15.8% in message recall
13.7% in purchase intent

Direct Marketing Links

2008-09-12T10:21:00.000-07:00

Another week has gone by. Where the heck do the days go, anyway? As always, here's a round-up of some of the articles that intrigued me this week.

Small Favors, Big Success
Wow! The research on this post from the Neuromarketing blog intrigued me (and surprised me, too). The author explores how someone is more likely to say 'yes' to doing a favor if they've already performed one small favor first. "The message in all this is clear. Making a small initial request of your targets won’t turn them off. Rather, if it is small enough to be granted by almost everyone, it will make them more likely to respond positively to your ultimate request."

The article cites multiple examples and really got me thinking. I will definitely be testing this concept in some future direct marketing campaign!

Build your Business with LinkedIn
Check out this post from Hit Search. It highlights a video about how one marketing expert is using LinkedIn, and specifically its Q&A feature to gain new clients (as in over $250,000 sales to-date!). I know that I really enjoy reading, asking and answering questions at LinkedIn and find it an awesome resource. Good to know that some folks are also benefiting in the way of new contacts and new contracts.

Domain Name Tips
Loved this podcast from Bob Parsons, CEO of GoDaddy.com. He provides tips on how to choose the best domain names. Some of my favorites: Make sure that the domain is easy to spell...And, avoid numbers and hyphens. Hmmm. Good stuff and a fun video to watch. An excellent use of a short video, by the way, AND it fits right in with GoDaddy's business. I guess this guy does know what he's doing...

Building Your Personal Brand
I loved this post from the Brand Dame blog (excellent name, by the way!). The author, Jill Biden provides some handy advice about using email signatures, your blog, website and social networks to build your personal brand. Small things that most of us forget about, but that can enhance your image on a daily basis.

Honoring 9-11
I know I'm a bit late here, but the advice from the Media Orchard blog resonates whenever you read it. The blog lists 9 ways to honor 9-11. My favorite: "Treat people the way you did in the days immediately after the 9/11 attacks." I can well remember how that horrible event caused us to really be grateful for our friends and family; it caused me to appreciate what I have in my life. These are good things to remember and a heck of a great way to commemorate 9-11.

Have a wonderful weekend. Enjoy the last of these summer days :)

Data Mining for the Wireless Industry

2008-09-11T08:16:00.000-07:00

It's not often that you see this Direct Marketing Blog announce new products or services. It's not our 'thing' to try to sell anyone anything (well, at least not here on the blog). But, sometimes, I come across announcements of new marketing solutions that really intrigue me and I feel compelled to share.

And, that's what happened today.

Xtract, a Finland-based firm that provides social advertising intelligence solutions (and also a firm that I'd never even heard of--shame on me) released this announcement just yesterday:
Xtract Social Links™ Now Available in USA, Adds Demographic Prediction.

You know I'm a sucker for data mining! This service offers a new spin on analyzing customer transaction data. Essentially, Xtract's tool combs through wireless carrier network data, and provides insight into each subscribers' personal contacts/phone numbers/people they call often. From the article:

Xtract Social Links turns raw customer data into a vital marketing tool for mobile operators. By analyzing the social networks within large scale mobile communication networks it identifies the underlying social network structures within the subscriber base and the most influential people in the network, which Xtract calls Alpha Users. The result is a completely new layer of customer insight and a tangible tool for increasing the efficiency of targeted marketing and advertising.

The add-on modules combine social network with demographic and behavioral information, providing a Three Dimensional (3D) view of the customers for specific business applications including marketing activities by mobile operators as well as targeting for mobile advertising.

Wow! Any marketer for a wireless carrier should be thrilled to hear about this solution. With the tool, now not only can you analyze your customer-base, but you'll have an understanding of your customers' friends and business colleagues. Think about the opportunities--the opportunity to present targeted offers, the opportunity to expand your customer-base.

And, of course, this insight provides mobile marketers with a wealth of data that can be used to target their ads to the exact right groups of prospects.

The other interesting thing is that the tool can be used to analyze usage of pre-paid customers--formerly customers that the carriers really didn't know much about (since they didn't send them a monthly bill).

Neat!

Mortgages, Finance, Home Prices--OH MY!

2008-09-09T09:03:00.000-07:00

Throughout my career, I've provided direct marketing services to the mortgage and financial services industry. I've had some excellent years and other years where times were tough. I understand the cyclical nature of things and am usually grateful that the accountability of direct marketing programs helps ensure their (and my!) survival.

But, I have to say that this is about the weirdest time I can recall for the financial services industry.

Just reported a few hours ago: Consumer borrowing slows to weakest in 7 months.
Pending US home sales are down. The AP reports that "The National Association of Realtors said its seasonally adjusted index of pending sales for existing homes fell 3.2 percent."
The government is taking over Fannie Mae and Freddie Mac. The cynic in me wonders how the government is going to be able to run these agencies efficiently (let me be blunt--it'll never happen!). This new government backing may give us a short boost of consumer confidence and some newly funded mortgages. But, I fear that long-term government involvement will simply lead to higher interest rates for home loans--not good for anyone.
The financial services sector is laying people off right and left. Some of my colleagues--highly experienced direct marketers--have been impacted by these layoffs.

Anyone who's read this blog knows that I'm typically an optimist. Yes, I'm the type of person that truly believes that the glass is half full. But continued news and personal experiences tell me that this time the financial services sector isn't gonna recover as quickly as it has in the past.

Tell me, am I being too pessimistic here? Are there lights at the end of the tunnel that I'm missing?

Case Study: Walgreens and Behavioral Targeting

2008-09-08T08:33:00.001-07:00

It's pretty tough right now to be a retailer. The economy is limping along. The Walmarts of the world are bringing prices down and changing customer expectations every day.

Smart retailers need to use all of the tools at their disposal to get more customers and sell more stuff. This article about Walgreen's coupon strategies, brought to us by DM News caught my eye: Walgreens' in-store BT strategy hits the mark.

Background
Walgreens is using behavioral targeting to engage customers in its stores.

The nation's largest drugstore chain has partnered with Catalina Marketing to print targeted coupons in its 6,000 stores, which are given to customers based on their purchasing behaviors, as they receive their receipts. Catalina runs in-store promotions in about 25,000 grocery stores and 14,000 pharmacies nationwide.

Strategy
Walgreens' overall strategy is to leverage consumer data more effectively, which Doug Egan, VP of marketing services and research for the company, said has ramped up in the last six months.

“[It's] part of a larger understanding that purchasing behavior can be changed in-store,” he said. “Truly, the trackability of it is great. We can track purchases by store, time of day and even register.”

Walgreens' marketing spend is still dominated by its circular — 60 million per week — and by direct mail.

Results
Egan said that in-store promotions, currently accounting for 10% of Walgreens' marketing spend, are growing, thanks to the success of the Catalina promotions.

“What we've heard from customers is that they are useful,” he said.

Average Walgreens stores see between 800 and 1,000 customers per day and print Catalina coupons for about 10% to 12% of them. About 6% of those printed are redeemed at a future date, said Egan.

The goal of using Catalina coupons or behavior targeting overall is to expand the consumer's shopping basket, said Egan.

“The average purchase, not counting pharmacy, is three to four items per store visit, and two store visits a month. We want to add a trip a month,” he said. “It's great to see data of what a customer is purchasing in real-time. You can then offer related programs. If they purchase two twelve-packs of Pepsi, we can target them with a coupon for a dollar off of three twelve-packs. You can see what customers purchase consistently.”

Interesting case study, no?

Back in June, I blogged about couponning and put forth this challenge to direct marketers: How do you track exactly who is redeeming your coupon, without making this cumbersome to the consumer? In Walgreen's case, they know what products people are purchasing, but I still can't see where they have a handle on the make-up of what buyers look like.

It would be so much more powerful if you could flesh out purchase behavior with other things known about the consumer, wouldn't it?

Then, you could begin true database marketing and really start to delight your customers--with offers tailored specifically to a customers' specific needs and situation. You'd not only have the knowledge that a specific customer enjoys Pepsi over Coke, but if you knew, for example, that that customer has a large family and likes to go camping, you could customize the Pepsi offer to include a propane tank or other camping gear. Now, we're talking about a much larger shopping cart (more revenue), and a satisfied customer who leaves the store happy that they've gotten a great deal, not only on Pepsi but on gear for an activity they love.

I would love to see retailing move in this direction, wouldn't you?

Segmentation Comes to Mobile Marketing

2008-09-05T07:59:00.000-07:00

I'm not typically a huge fan of off-the-shelf segmentation packages. We've all seen them from leading companies such as Claritas, Experian and Acxiom. These data firms each sell their version of a consumer classification scheme that attempts to categorize each consumer/household into one of 50+ clusters.

And, they've come up with excellent names to allow us to visualize the segments (I especially love the Prizm cluster called "Shotguns and Pick-ups"!)

Typically, my take on using these off-the-shelf tools is that a marketer would be much better served developing their own customer segmentation strategy. I find that 50+ segments is simply too many clusters to act on. If you do the data mining exercise to find your own clusters, you'll end up with a manageable and actionable segmentation system--one that's more powerful than the non-customized version. By the way, if you'd like to see a sample segmentation deliverable from RRW, just request it here.

With that said, I was still quite pleased to hear that segmentation is being applied to mobile marketing! Check out this press release:

Nielsen Delivers PRIZM Insight for Mobile Advertisers
Combining Consumer Segments With Mobile Media Targeting Enables Advertisers to Connect More Effectively With Mobile Audiences

Neilsen's idea is to combine mobile usage patterns with Claritas PRIZM clusters to paint a full picture of mobile audiences. Makes sense to me! From the article:

By combining Nielsen Claritas' PRIZM lifestyle segmentation data with Nielsen Mobile's Mobile Media Marketplace, Nielsen is positioned to provide unique insights into consumer media habits.

For example, analysis of one PRIZM segment -- Bohemian Mix (a progressive mix of young singles and couples, students and professionals who are quick to check out the latest movie, nightclub, laptop or microbrew) -- shows that this group leads all other categories in mobile Internet usage, with 27 percent accessing the mobile Internet in the last 30 days (compared to an average 16.7 percent across all other segments).

"Targeted customized analysis of mobile usage patterns for PRIZM's 66 consumer segments allows advertisers to make more informed decisions about where to place mobile advertising," said Kanishka Agarwal, vice president of mobile media at Nielsen Mobile. "Mobile-PRIZM drives a stronger advertising ROI for our clients," he added.

I love to see technology mingling successfully with data (a passion of mine!), so I'm definitely going to learn more about this offering.

More on Marketing for Wineries

2008-09-04T08:41:00.001-07:00

I just can't seem to get off of the topic of direct marketing for the wine-making business, can I?

Last week, I shared with you news about Jordan Winery's new loyalty program (as well as some personal information about my love for wine and the genesis of my firm's name, RRW!). Today I thought you might be just as interested in how Stag's Leap is using email to build a customer relationship.

From DM News: Stag's Leap Wine Cellars toast to e-mail. The article goes into some pretty good detail about how this winery is maximizing the channel.

The winery works with e-mail services firm Vertical Response to send 12 e-mail campaigns a year. Six are launched every other month to the house mailing list and the company plans to double that number this year. The others are launched on the opposite months to club members only.

“The strategy is to reach out to our consumers who have requested information about our winery and to hopefully prompt them to visit our Web site to build a long-term relationship with our customers,” said Nancy Burton, Club 23 manager at Stag's Leap Wine Cellars, via e-mail.

I agree that email is an excellent channel for Stags Leap.

Email is a tool that, when used the right way, generates sales and boosts visibility. We all receive so much email on a daily basis, however. We know that the only emails that survive the 'delete' button in our own in-boxes are those that we want to receive; those that we're interested in. We all keep personal emails and we all have that short-list of commercial emails that we wouldn't miss, and that we definitely open.

So, what makes an email move to that 'open' short-list? In my opinion, it's as simple as relevance. If the email is coming from a company or an industry that I'm interested in, I'll open it, even if I don't have a long-term relationship with the sender. In my case, for example, I would definitely open an email from Stags Leap (or any other winery). I'm interested in hearing about wine. I like to buy it and I'm already a member of many wine clubs.

The challenge, of course, is to figure out who among your customers and prospects is receptive to hearing from you. This is where tried and true direct marketing disciplines such as testing and segmentation come into play. A strong offer and a clear call to action are critical components of a good email campaign, too.

And, to complete the loop, it's critical to measure success against campaign goals. By success, I think we need to go beyond open and click through rates, and do a much better job of quantifying email campaign results. Your measurement strategy needs to answer these types of questions:

How many incremental or new sales did the campaign generate?
How many referrals did you make? How many new names can you add to your list?
How did the campaign build loyalty (a really tough one to answer, btw)?

The bottom line: We direct marketers already have the knowledge and the tools to build superior email campaigns.

Economic forecast for marketing spend

2008-09-02T10:14:00.000-07:00

"Direct's annual survey of e-commerce practices shows continued investment in digital strategies, with additional spending anticipated for 2009."

The above is a quote from the leading paragraph in a Direct Magazine article, titled "What Downturn?". The article reports on results of a recent survey that measured online and other marketing spending trends.

It should be no surprise that in this tough economy companies are looking for a measurable return on their marketing investment.

According to Direct's research, 29% of all marketers have shifted marketing dollars from traditional channels to online media, a figure comparable to last year's study.

Of course, online media is augmented with off-line. Marketers are embracing a multi-channel approach, with a slightly different 'spin' for B2B vs B2C marketers.

Consumer firms indicate direct mail is their key Web site traffic driver, with e-mail a close second. Natural search (as a result of search optimization), paid search listings and word-of-mouth referrals follow.
B-to-B firms rely more on word of mouth — so much so that it's the top-cited channel for generating Web traffic. E-mail and direct mail campaigns are gaining fast, though, while search engine optimization trails, a distant fourth.

Some other interesting findings:

Just over half of B-to-B respondents optimize their Web sites in order to boost rankings in search engine queries, compared with more than two-thirds of consumer companies.
Consumer marketers are more diligent about collecting and analyzing clickthrough data than B-to-B firms. Better than three out of four consumer respondents do this, vs. 57% of B-to-B DMers.
Just over one out of five respondents say staffing in their online marketing departments was up during the last 12 months, while nearly two-thirds note that it stayed the same. As in 2007, only 4% lost employees.

My take: Overall, direct marketing, as an industry, is alive and kicking. We're poised for growth in key areas (analytics is one of them) and a multi-channel approach is important.

Direct Marketing Links

2008-08-29T10:21:00.001-07:00

Can you believe that the end of summer is already upon us? Happy Labor Day to all!

As always, since it's Friday I'll share some of the blog reading that I found especially interesting this week. Enjoy!

Tomorrow's Classroom
Chris Brogan started a very interesting conversation with his article on how a typical third grade classroom may be using social media and other technology as part of the education process. Great food for thought here and lots of insightful comments, too. What a fun time to be growing up--now, if only adults can keep up with the kids, in terms of technology adoption...

Campaign Marketing Critiques
Like most American's, I've been super interested in this presidential campaign. I've especially appreciated how Obama is connecting with his voters and maximizing social and mobile marketing techniques. That's why CK's post on the Marketing Prof's Daily Fix blog hit home. She's asked a number of experts to comment on both the Obama and the McCain marketing and branding strategies. Fascinating!

A New Marketing Catch Phrase?
"Listening by walking around, or LBWA". That's the phrase coined by Mark Hurst in his Good Experience Blog. He talks about how important it is for executives to understand the customer, and brings up a good point that one way to gain this understanding is to experience the company from the customers' perspective. He recommends that retail executives actually walk around their stores and see what the customers are up to. Of, if your firm is online, sit with a consumer and watch him/her navigate your site. Seems like 'no-brainer' advice, but it's certainly essential, and probably something that most senior execs don't normally make a habit of doing.

Traits of Good Blogs
From the 43 Folders blog (I love that name, by the way!), author Merlin Mann lists what he thinks makes for a good blog. One of my favorites: "Good blogs are weird. Blogs make fart noises and occasionally vex readers with the degree to which the blogger’s obsession will inevitably diverge from the reader’s." Love this!

Labor Day Defined By Seth Godin
Gotta end this list with the master, right? Very interesting post about working smart, working hard and working long. Hmmm. I want to be the one that works only a few hours, is most fulfilled and quickly becomes a billionaire... And, no you still can't post a comment to his blog (a discussion held this week on Robert Rosenthal's Freaking Marketing blog). But Mr. Godin is so darn smart, isn't he?

Loyalty Program for the Wine Industry

2008-08-28T08:35:00.000-07:00

Those readers who know me know that I'm a bit of a wino. I love good wine, especially when it's paired with a yummy meal. Or, what about a nice crisp glass of chardonnay on a hot summer day? Nothing beats it.

You may not know that the name of my business, RRW, actually stands for Red Red Wine. The UB40 song was popular when I was in college and when my best friend and I decided that if we ever owned our own business, we'd stay true to our reggae roots and name it RRW. So, RRW Consulting (first called RRW Marketing) was born.

So, what does all this wine talk have to do with this blog's topic of Direct Marketing?

Since RRW's inception, we've been searching for ways to work with wineries--you know validate the name and allow me to really enjoy a fun client--with side benefits. We've developed programs and campaigns targeting wineries, with no bites from the actual potential clients. Well, I'm thinking that this is all going to change! I may finally be able to bring my direct marketing expertise to my favorite industry: winemaking.

Check out today's DM News Article: Jordan Vineyard offers rewards for loyal connoisseurs.

The article discusses the recently introduced loyalty program from one of Sonoma County's leading wine-makers.

"Jordan Vineyard and Winery, a California-based estate that produces Cabernet Sauvignon and Chardonnay, has launched a new loyalty program called “Jordan Estate Rewards.”

The program awards three points per dollar spent on Jordan wines, food, wine tastings and other services and products. As of September, customers can start redeeming points for guest privileges at the winery, including tours, tastings, private dining, fishing excursions and overnight getaways — all rewards targeted to Jordan's core consumer audience of people that enjoy fine wine and culinary experiences."

We can only hope that other wine-makers follow suit and start to reward us wine drinkers for doing what we love to do!

From a direct marketing perspective, I like to see these wineries start to maximize the customer information that they've been collecting when people go wine tasting. Wine lovers love everything about wine and they certainly don't mind receiving email or other communication from their favorite wine maker.

Believe it or not, we've spent quite a bit of time thinking of direct marketing strategies that wineries could use to grow their business--both direct to consumer and retail. I'd be happy to share--just request the white paper called "Loyalty Marketing for Wineries".

And, if any of you in the wine industry would like to help me realize my dream of bringing my expertise (direct marketing) to an industry I love (wine-making!), please give me a call. We may even be able to work out some sort of bartering exchange for my work...

Obama and Mobile Marketing

2008-08-26T11:03:00.000-07:00

If the way that Barack Obama is handling his marketing is any indication of how he'll run the country, he definitely has my vote. I love to see how his campaign is embracing the new. He's harnessed the power of social marketing. He's reaching the Millenial generation (see my recent post on same topic) and hopefully galvanizing young adults to vote. Now, he's pulled off a mobile marketing coup.

See this Washington Post article about the much-touted announcement of Obama's Vice President, done via text messaging.

What a smart move--publicize way ahead of time that you're going to announce your VP choice via a text message to those constituents who've signed up on your website. I can only imagine how many people signed up and relinquished their cell phone numbers, just so that they could be first to hear the big news. Kudos to Barack Obama for his data collection victory!

According to this Fox Business article, Obama, through his use of text messaging, is truly setting the stage to mobilize the vote come November.

"Allison Dale, a University of Michigan graduate student who has studied the impact of text messages on voting, said Obama's campaign was shrewd to give prospective voters a juicy piece of information -- the vice presidential pick -- in exchange for their cell phone number.
Cell phone numbers can't be obtained in a directory, she noted, and the Obama campaign should be able to collect tens of thousands of numbers this way. But she said it was unclear whether the database will be heavy with political junkies or people who would be inclined to vote under any circumstances.

"We're still sort of at the beginning of figuring out what you can do with the text messaging," Dale said."

I think that most marketers can learn a lot from the Obama campaign. So smart to keep an open mind about channels, media and technology. Lessoned learned: maximize all opportunities to reach, connect and sell to your core clients.

Case Study: Corporate Blogging

2008-08-25T08:16:00.000-07:00

Some of you out there may still be wondering why so many companies are investing time and energy in blogging. Maybe you're even considering starting your own blog and you're not sure if it's a good idea for your personal business situation. I know that the question of whether or not to blog remains a hot topic on the LinkedIn Q&A area.

To me the answer is pretty clear (It's fun to blog. Plus, the benefits far outweigh the time and effort spent). But, I thought I would focus this Monday Marketing Case Study on a variety of companies who've decided to blog, and the types of results that they've experienced.

From the Washington Post: Marketing Moves to the Blogosphere

The article cites several examples of diverse firms who have incorporated blogging into their corporate communications mix. From Honest Tea, to Dolcezza, a local gelato shop, to Marriott International.

"He's (Chief Executive Bill Marriot) not your typical blogger -- he doesn't use computers. Instead, he dictates entries into a recorder and a staff member transcribes and posts them. The audio is also on the site, which averages about 6,000 visitors per week and has had more than 600,000 total visitors since its inception in January 2007."

And, it's not only traffic that the Marriott is generating from their blog...

"Marriott has made more than $5 million in bookings from people who clicked through to the reservation page from Marriott's blog."

Even if you have a hard time figuring out what your specific ROI might be from maintaining a blog, it's key to factor in benefits that may be difficult to measure.

"Though blogs may not always yield immediate results, they can be part of a "halo effect" that ultimately gives a business a bigger online presence, says Debbie Weil, a corporate blogging consultant and author of "The Corporate Blogging Book." "I think that the really important thing about using a blog as a business strategy is that usually you cannot connect the dots directly from blogs to revenue," Weil said."

RRW has been blogging for about 1-1/2 years. Check out what we said in May after our one-year anniversary, on the topic of what blogging has done for the business. We've met some great new colleagues and have boosted visibility for the firm. Our blog is consistently ranked #1 when you search for "Direct Marketing Blog" on Google or Yahoo. Most importantly, this blog is a creative outlet and one that allows me to keep up with what's going on in my industry. It's fun!

Look at it this way--Technorati claims that there are over 100 million blogs out there. And, guess what, only 5,000 are corporate blogs! Think of the opportunity to get in on almost the ground floor. If you're the first in your industry to start blogging, you'll be in the a great position to own the space. Not a bad place to be, especially if you're not the largest in your industry.

You know, I think that's what I like the best about blogging. You don't have to be big to stake your claim and make a name for your business, on the blogosphere, of course.

Direct Marketing Links

2008-08-22T11:04:00.000-07:00

Happy Friday! As always, here's a round-up of some of the blog posts I've enjoyed this week.

B2B Lead Nurturing
I personally believe that lead nurturing is both a science and an art. It's so key to develop an understanding of where your leads are in terms of the sales funnel, and then treat them appropriately so they move to the next step and ultimately become loyal customers. This post from the B2B Lead Generation blog provides a recap of some recent Marketing Sherpa research on this topic as well as some other handy links.

Writer's Block?
Wendy Maynard shares some excellent ideas for bloggers and others who write, on her Kinetic Ideas blog. She lists 7 tips to help you come up with blog content. My favorite is her Tip 7: Share Your Success Stories. I agree that there can be nothing more powerful than hearing about a real-life example of marketing that achieved results. The more exact reporting of results (numbers, revenues, etc), the more powerful the case study (in my opinion, of course).

Social Marketing Case Study
And, while we're on the topic of the power of case studies, take a look at this post from the Advergirl Blog. The author goes into wonderful detail about the social marketing initiatives recently launched by the city of Columbus tourism and convention bureau. I like the honesty and insight of this reporting, and I learned a lot. Thanks, Advergirl!

Client Relationships: Good or Bad?
We're always talking about the importance of building and maintaining long-term client relationships. That's why this opposing viewpoint from the Guerrilla Consultant Blog was especially interesting. It talks about the downside of long-term client relationships. A very interesting perspective and one that hit home with me.

Rebounding from a "No"
This simple, yet oh-so-true post from the Diva Sales Tips Blog is definitely worth a read, especially if you're responsible (like me) for generating sales and new business. It provides practical and sound advice on actions you should take when your prospect or client says 'no' to one of your proposals. I liked this quote: "So even when you get a NO - make sure you act gracious." The article goes on to give you ideas of concrete actions you should then take to set yourself up for the next 'Yes'.

Where do you shop?

2008-08-21T08:49:00.000-07:00

OK, I'll admit it. I'm a true data geek. I get excited when I find data that's predictive of customer behavior. You know, for example when you're building a response model and find that gem of a data element that sets responders apart from non-responders? It's even cooler when the data element is something that you least expected to be so predictive.

I remember working with another analytical expert who was almost giddy when he determined that red vs. blue states made a difference in his home equity model. Yes, if you lived in a Democratic state you were less/more (I can't remember) likely to respond to his mortgage offer. Who knew? The data did, I guess!

So, you can't blame me for getting a chuckle about this article that reports a correlation between political leanings and where a consumer shops. But, when you think about it, where someone shops tells you a lot about them.

When asked to “vote” as if the election were held today, Walmart, Kohl’s and JCPenney Shoppers are more likely to vote for McCain; while Macy’s and Target Shoppers say they would cast a ballot for Obama, according to BIGresearch's August Consumer Intentions and Actions (CIA) Survey.

Hmmm. I guess we have another dimension to add to our segmentation and other analytical strategies--shopping habits!

Measuring your online marketing

2008-08-19T09:34:00.001-07:00

I found this chart today from Marketing Sherpa. Essentially, it provides some ideas of types of performance to measure throughout each phase of the sales process.

You know, as a long-time direct marketer, one of the key challenges I face on a daily basis is how to make sure that each campaign, each marketing dollar spent can be measured and accounted for. When my clients were only using channels such as direct mail and telemarketing, this task was a tad easier. In the multi-channel environment we live in now, the task can be fairly daunting.

Hopefully, like me, this chart will provide you with some good ideas on what exactly you can start to measure in terms of your online advertising programs. I like it because it makes me think not only about sales, but about clear, measurable events you can track as your prospects progress through the sales funnel.

Case Study: Corporate Social Marketing

2008-08-18T08:16:00.000-07:00

Today's case study focuses not on a single company's specific direct marketing success, but instead it explores the trend of businesses leveraging their brands and using social media to shout to the world how much they care, and (the kind part of me says) to get consumers more involved in global concerns such as renewable energy, climate change and poverty.

See this article from the San Francisco Chronicle: Companies tout their social consciences online.

The article provides a range of examples of companies using outlets such as YouTube to share their work on a variety of causes. Companies sited include the usual suspects: Starbucks and Nike, and also includes Timberland and Whole Foods. All of these firms are raising some pretty significant awareness both for their chosen causes, AND for their companies.

Of course, the companies are motivated by more than altruism.

For Timberland, the YouTube exposure is a marketing instrument, Morey-Reuner (Timberland's Senior Manager of Value Marketing) said.

And it reaches the target groups of the young and keen to consume. The Timberland Earthkeeper spot, for example, has been watched by nearly 107,000 viewers since it was posted in April. The Nike clip has drawn more than 125,000 viewers since May.

"Companies have an interest to be perceived as socially responsible, but they want to sell their products at the same time," said David Stewart, dean of the School of Business at UC Riverside. "YouTube is a new vehicle, and companies are offering these types of media. Therefore, the spots are not completely altruistic. There's an element of both selling and doing good."

Here are specific examples referenced in the article:

Timberland's Earthkeepers: www.youtube.com/user/earthkeepers
Nike's The Girl Effect: www.youtube.com/user/girleffect
Starbucks in Tanzania: links.sfgate.com/ZENM
Whole Foods' Whole Earth Generation: links.sfgate.com/ZENN

I have mixed feelings about this type of promotional activity. I guess consumers (especially young ones) are savvy (and cynical) enough to understand that firms involved have an ulterior motive. And, I guess, if the cause is a good one, then any support is a good thing, right?

But, somehow this type of altruism continues to ring a tad false to me.

Direct Marketing Links

2008-08-15T08:53:00.001-07:00

Small Business Blogging
For all of you out there who are still toying with the idea of starting your own company blog, this post from Duct Tape Marketing is a must-read. Author, John Jantsch, shares a story about how an unlikely blogger (a sign company) is using blogging to differentiate his business. And, for those who aren't blogging yet--my advice (and stolen from one of Portland's top marketers) to you would be--Just do it!

Banking and Social Networking...
Swami at his Customer World blog has started a lively conversation about the new banking review site, MyBankTracker.com. You'll see some differing opinions about whether people will be likely to use this service, or not. I'm also pleased because he refers back to my post on same topic :)

Don't Ignore your Generation Y Customers!
You know how much we love the concept of Generational Marketing--using generational attributes to understand your customer segments and also to drive marketing strategy. So, I really enjoyed reading this post from The Financial Branding blog that specifically talks about how important it is not to ignore or underestimate Gen Y. Pictures are even included!

More on Mobile Marketing
From the 1 to 1 Media blog, check out this post that discusses mobile marketing. The article emphasizes that Mobile Marketing should not be a stand-alone channel, but should fit into your overall marketing strategy. "One of the best uses of mobile, he said, is to enhance other channels with a mobile call to action." Good ideas, here, and a nice complement to my post on same topic, from yesterday.

Whole Foods
The Church of the Customer blog started a thought-provoking conversation in their post about Whole Foods Market. Blog author Jackie Huba cites Whole Foods' recent dismal financial performance and asks her audience what Whole Foods should do to boost their business. Some excellent comments--definitely worth a read!

Enjoy your weekend! Stay cool and have fun.

Mobile Marketing: Who's Doing It?

2008-08-14T08:19:00.001-07:00

I have to be honest with you. Although we've been writing about the importance of incorporating Mobile Marketing into the direct marketing tool box for over a year, so far, not one of our clients has even come close to using this channel. Not a single client is even talking about it. And, the only advertising I've personally received on my own cell phone have come from Verizon Wireless, my service provider.

So, where's the disconnect? In an April blog post, we reported that Mobile Marketing is expected to reach $19 BILLION in 2012 (from $3 billion in 2007). I just wonder who's spending all this money...And, who's getting these ads served up to them?

This I know for sure--mobile marketing is happening, somewhere!

Take a look at this MarketWatch/WSJ article I found today that reports a 13% quarterly growth in mobile marketing advertising expenses.

"Limbo, one of the largest mobile social communities in the US, and GfK Technology, a leading market search agency, have released the latest joint Mobile Advertising Report (MAR). The second quarter report shows that a high percentage of mobile phone users in the US, UK and India indicate they are receiving advertising messages through their mobile phone; 85 percent in India, 51 percent in the UK, and 37 percent in the US."

Within the mobile marketing mix of Internet banner ads, text messaging and radio ads (sidenote--me being dumb again--what is a mobile radio ad? Anyone?), the most common format is the text message. For any of you marketing to the youth market, note that younger males typically view mobile Internet advertising the most.

And, to answer my question--which advertisers have adopted mobile marketing as a channel?

"The brands recalled in advertising via this channel were mainly mobile carriers, handset manufacturers, media brands and digital entertainment companies."

Finally, as is usual in all things cell phone related, the US lags behind other countries.

"Though the US lags behind the UK and India in many mobile phone usage categories, it shows strong growth. The number of people using mobile phones in the US has grown from 251 million in Q4 2007 to over 263 million this quarter, up nearly ten percent. The US also shows steady increases in the number of people who recall seeing advertising through their mobile phone, from 31 percent to 37 percent over the same time period."

So, there you have it, Mobile Marketing is a reality already and poised to take off in a big way. I would really love to hear from those marketers out there who have personally used the channel. Case studies, anyone?

Analytics Key for E-Marketers

2008-08-12T09:20:00.000-07:00

As a self-proclaimed data geek, I always get a kick about learning about unexploited opportunities to reap the benefits of data-mining. I salivate about the potential to make an impact using tools that haven't been used before. I truly do get excited when I see an opportunity to generate new sales simply by obtaining a better understanding of customers' wants and needs.

Take a look at this article from DM News: E-commerce should stress analytics: eTail 2008.

The article provides a recap of a recent presentation at the eTail conference in Washington. It talks about the opportunities for e-commerce firms to start to benefit from the knowledge embedded in the customer data they collect online.

He (speaker Sheldon Gilbert, founder and CEO of Proclivity Systems) said many e-commerce companies only “look at the cash register;” only what a customer is buying. To fully optimize marketing efforts, he added, companies have to dig deeper into predictive modeling, and take into account factors such as seasonal shopping cycles, consumer buying and browsing patterns, and gauging the value of certain “action words” such as the word “organic.”

Actually, some of what the speaker highlighted seemed fairly 'no-brainer' to me. Check out this point, where he talks about how to identify cross-sell opportunities:

He also said that companies should mine their databases to learn what customers of one particular product are also buying. For example, if 79% of customers that bought denim products and shoes from a retailer overlap, then the company needs to determine how to send the proper offer to those customers based on that data.

“The data will tell you what to offer,” he said. “Human behavior is fairly predictive.”

If this article is correct in stating that many e-commerce firms have not yet employed data mining tactics to improve customer strategy, than this is a huge opportunity for direct marketers. E-commerce needs analytical folks who are schooled in data analysis and modeling techniques--people who've had practical experience turning customer behavior into programs that make money.

And, guess what? As a direct marketer with a focus on analytics, I'm ready to help!

Case Study: Obama and Generational Marketing

2008-08-11T08:18:00.001-07:00

You may have noticed that each Monday I publish a direct marketing case study. Many times I find these client success stories on corporate websites. Sometimes, like today, they come from today's news.

I was very interested in reading how Obama is using an understanding of the Millenial generation to capture their loyalty and (presumably) their votes. I've pulled out pieces of the article, below, but for more complete information, I urge you to read the full "Ad Age" article: What Obama Can Teach You About Millenial Marketing.

Overview:
Mr. Obama's brand management, unprecedented in presidential politics, shows pitch-perfect understanding of the keys to appealing to the youngest voters.

Why is it working?
So what's the appeal to the under-30 set? True, the youth vote traditionally skews Democratic, but the difference this year is that Mr. Obama has actually motivated turnout. His success, it seems, is a result of both product and the branding behind it. The qualities he projects -- a cool, smooth aura, the communal values of hope and unity, his teeming crowds and his campaign's seamless graphics -- are the essence of appealing to millennials.

"Millennials want someone smart, funny and with a slight edge," observes Allison Mooney, who tracks youth trends for Fleishman-Hillard's Next Great Thing. Mr. Obama's occasional prickly moments, as when he dismissed Mr. McCain's recent ad comparing him to Paris Hilton -- "Is this the best you can do?" -- shows them he gets it. "Obama's kind of mellow. He doesn't have polarizing views."

He's got branding down, too.
Wrote Newsweek's Andrew Romano, "Obama is the first presidential candidate to be marketed like a high-end consumer brand." His rising-sun logo echoes the one-world iconography of Pepsi, AT&T and Apple.

Design guru Michael Bierut told Romano that the stand-alone logo, consistent use of the Gotham typeface ("very American ... conversational and pleasant") and his online look and feel make Mr. Obama the first candidate with a "coherent, top-to-bottom, 360-degree system at work. ... There's an absolute level of control that I have trouble achieving with my corporate clients."

Generational Marketing Basics
Mass brand experiences, from the iPod to Harry Potter, appeal strongly to millennials, who have been shown to be a more communal, pro-social generation than their predecessors.

While critics see Mr. Obama's penchant for mass gatherings as arrogant, Mr. Howe finds it perfect for millennials: "They're more civically connected, and they find strength in numbers."

According to Fleishman-Hillard's Ms. Mooney, the Obama campaign's mastery of cutting-edge social media, through the my.barackobama.com site (known internally as "MYBO"), is optimized for millennial appeal. For this generation, "the new pronoun is me, my. Using my-dot brings it to a personal level."

The MYBO site shows that Mr. Obama's campaign has made the leap from CRM (customer relationship management) to CMR (customer-managed relationship) better than many commercial marketers, according to Ms. Mooney. "Young people want to be in control of their relationship with a brand. They want to customize and personalize," as they can on iTunes, Mobile Me and YouLocate. The campaign's site allows this with its use of tagging, discussion boards, photo uploads and other interactive elements.

Lesson learned from this case study--if your target market is people 26 and younger (Millenials were born in 1982 and beyond), you should take a close look at how Obama is reaching and connecting to this group.

RRW has put together an overview of the five living generations. It provides key motivators and descriptions of each group. We'd be happy to share it with you. Request it here: Generations Overview.

Friday Direct Marketing Links

2008-08-08T09:22:00.001-07:00

Here's my round-up of some of the things I've been reading this week. Hope you enjoy these articles as much as I did.

What happens when you mail stinky cheese?
We all love to hate the US Postal Service (especially when you're in direct marketing, and they persist in raising those rates...). However, I have some new respect after reading this article from the Direct Creative Blog. It reviews some of the crazy things that the USPS has successfully delivered. Some examples: 1) $20 bill, wrapped in clear plastic for all to see, 2) A rose with no wrapping/packaging, 3) Fresh green coconut with no wrapping, all the way from Hawaii. It's amazing what they actually will deliver. Fun stuff!

Harley-Davidson Builds Customer Loyalty
I love reading how technology makes our lives more fun, AND I especially enjoy reading how the right use of technology can improve the customer experience and enhance a brand at the same time (wow--a lot to accomplish!). From the Customer Experience Crossroads Blog, see this article titled: Using GPS to build customer experience: yes, it's another Harley-Davidson story. The article discusses how Harley Davidson is pre-loading their GPS systems to include favorite rides, and how it encourages Harley riders to share their own favorites. Heck, makes me wanna become a biker!

Mad Men
I enjoyed this post from Chuck Nyren's Advertising to Baby Boomers blog. He shares his take on the hit show, Mad Men (a smart and funny TV series about advertising in the 50's/60's which also happens to be a favorite of mine). Chuck talks about the advertising greats and actually made me nostalgic and wish to have been around when creativity ruled advertising and Madison Ave was putting out cutting edge advertising.

"The Graying of the Great Powers"
Continuing on the Boomer theme, check out this thought-provoking post from the Boomer Worker blog. It discusses the economic implications of the aging population, not just here in the US, but worldwide. This quote provides a sneak peek at the article:

"With all of the headlines about the U.S. losing out to Europe today, it is hard to imagine that the situation will soon turn radically in the opposite direction. However, the demographics foretell a radically changing situation. Europe is headed for major problems as their population ages and declines far more than that of the U.S."

Social Networking Comes to Banking

2008-08-07T08:42:00.000-07:00

Like most people, I like to complain about my bank. Why do they hold a new clients' checks for 10 days, before depositing it to my business account? What's up with these outrageous ATM fees? Why, when I call customer service with a question about a credit card I never use, I'm treated like a pariah, even though this same bank has my mortgage, some serious investments and my checking business? Why can't they understand the entire relationship and treat me like a valued customer???

Oh, most of us have lots of things to say (usually not very nice things...) about our bank.

Well, now you have a place to vent! Just announced this week, a new social networking site, called My Bank Tracker, that allows consumers to rate and review financial offerings.

From the introductory press release:

The "My Bank Tracker" site is designed to present sophisticated information through a visually uncluttered and an intuitive user interface where consumers can interact with each other and where local and national financial institutions (virtual or physical) can present their many product offerings. "MyBankTracker.com realized that there was a need for an online banking services information destination that allowed users to comparative shop for a service that was best for them while leveraging the knowledge and experience of the millions of existing banking customers," said Alex Matjanec, Media & Communications - My Bank Tracker.

"With the launch of My Bank Tracker, we're taking the personalization and social networking movement a step further by leveraging the power of the internet and of consumers, to inform and educate in ways that were up until today lacking for traditional institutions such as banks," added Matjanec."

What will be very interesting, I think, is to see how banks react when their esteemed institution is being bashed by an angry customer. The smart banks will participate openly in this new community and address criticism honestly. They need to tackle issues and show that they are making positive changes as a result of hearing feedback.

Banks need to look at this new networking site as an opportunity to learn more about customer needs. It's also an opportunity to highlight their competitive and unique offerings to a captive audience of financial services shoppers who are actively seeking financial information. Talk about direct marketing!

On the flip side, there are lots of things that banks should not do. For example, they absolutely cannot become defensive. They don't have to agree with criticism of their services, but they need to answer concerns politely and with facts. Moreover, if the customer complaint is legit, they need to fix the problem immediately. And, most importantly, if this site takes off, they can't ignore it. Banks need to be vital contributors to this community.

I'm looking forward to seeing how the different financial firms embrace the concept of a social networking forum dedicated to them.

Marketing Case Study: Customer Lifetime Value Important to Automotive Industry

2008-08-04T16:44:00.000-07:00

Today's direct marketing case study comes to us from Sigma Marketing, a Rochester, NY-based database marketing company. While I wish that they would have shared more about what went into their "Loyalty Metric" (probably it's their confidential 'secret sauce'), the message remains clear. It's important to get a handle on the true value of your customers, in order to best drive loyalty, retention and upsell campaigns.

Maximizing Lifetime Customer Value:

The Client
Major automotive manufacturer

The Challenge
Our client was overlooking future revenue opportunities by not recognizing the true lifetime value of its current customers. The client recognized that there were differences among customers’ loyalty over a lifetime, but could not quantify or act on those differences.

The Breakthrough
SIGMA created the Loyalty Metric, a measurement that allowed the client to make business decisions based on a real and accurate lifetime view of the customer, not a 12-month or even 60-month snapshot.

The Loyalty Metric yielded important and valuable learnings for the client:

current customers are worth billions of dollars to the client over a lifetime;
the top 10% of customers contribute 89% of total value;
the highest-value customers and lowest-value customers shared many similar characteristics, but one critical characteristic differentiates the two – purchase velocity.

The Win
SIGMA discovered that the client could best utilize The Loyalty Metric in:

the development of retention programs for high-value customers;
taking cost-effective, pre-emptive action against potential defectors;
creating intelligent marketing programs to effectively manage both high-value and low-value customers;
generating additional vehicle sales at higher velocity among medium-value customers, turning them into high-value customers.

Email Personalization

2008-08-01T09:05:00.000-07:00

Just as in direct mail, email marketers are finding that sophisticated personalization boosts results.

Yep, we like to see our names in print; we like to know that the companies we buy from know us and have taken the time to address us personally; we wait for the day that each and every mailing is so relevant that the words SPAM or Junk Mail is no longer in our vocabulary (Suzanne being optimistic, here...).

This BtoB Online article, Personalizing your e-mail efforts, provides a recap of a research report recently released by the Aberdeen Group.

"Companies that engaged in more advanced personalization strategies are more likely to see a higher return on that investment. Ian Michiels, a senior research analyst in the digital marketing department of the Boston-based research firm and author of the report, said customers are beginning to expect a higher level of relevancy in the e-mails they receive."

The article then provides 4 pointers on how to take personalization to the next level. I'll summarize the 4 tips.

Database accuracy is key. Getting the personalization wrong (with wrong info) is worse than not doing it at all.
Verify and segment your data. Consider appending data from an external source to round out what you've collected. Then, use that complete view of your customer and identify unique customer segments. Tailor your creative and your offer so that they resonate with each segment. (A side note: segmentation is a subject near and dear to my heart. I'd love to send you more info on our approach and share some case studies, if you're interested.)
Use Web analytics to track behavioral data and improve personalization. Track and monitor how individuals in the database move around on your company’s Web site. Know what people are clicking on, what they're most responsive to, and use that data to improve future campaigns.
Understand the buying cycle. Take information from the Web analytics efforts and figure out where individuals are in the buying cycle. "The next message a company sends to people on the e-mail list should help them progress to the next step so they ultimately make a purchase."

Oh, just reading this research makes me excited! Direct Marketing experts who understand data and analytics can really impact e-marketing, and improve the customer experience at the same time.

Jobs with Long Vacations

2008-07-31T08:24:00.000-07:00

Serious marketers be fore-warned! I'm veering WAY off my normal direct marketing topics today.

I have the mid-Summer blues. Too much work; too much worrying about this dreadful economy; not enough fun. So, when the leading headline on my Yahoo home-page was: Jobs with Long Vacations, I just had to read more.

To set the stage and, possibly, to get you more disgruntled and stir-crazy:

"Compared with workers in other countries, Americans work too much. We take little time off for rest and pleasure. More than half of us don't use any vacation time at all, adding up to more than 421 million unused vacation days a year. We're workaholics.
Most Americans only earn on average 14 vacation days a year, compared with our Italian counterparts (42 days a year), the French (37), Germans (35), and Canadians (26). Even the Japanese--long considered the most over-worked people on Earth--average 25 vacation days a year. No wonder American job burnout is common from coast to coast."

So, what are the five miracle jobs that can save us from our workaholic state, those with the most time off?

Teachers and School Administrators. OK, I can buy that. But, after months of dealing with screaming brats, they need the rest, right?
Holistic Health Professionals. Such as massage therapists. Hmmm. Not for me--too touchy-feely.
Freelance Game Designer. Oh, if only I were so technical, and imaginative. I think I'm too old to learn these new tricks. Darn.
Convention and Tourism Planner. Now this one sounds like fun! Right up my alley.
Business Consultant. Oh no--wait just one minute! This sounds like my very own profession. What the heck am I doing wrong????

In all seriousness, I DO have a vacation planned late September (Maui for my honeymoon!). It's important to balance work with fun. Workaholics definitely are NOT fun...

Watch out for those Gamma Women!

2008-07-29T09:11:00.000-07:00

I'm thrilled! There's another new segment for us direct marketing practitioners to target: The Gamma Women.

"Gamma women share and exchange information, ideas, opinions, contacts and recommendations with their wide-reaching network using multiple media and channels of communication. This is in sharp contrast to the ‘Alpha’ style of communication – a top down model of selectively passing along information. While a Gamma’s sense of self is guided by her internal beliefs, passions, and priorities, an Alpha is driven by external social hierarchies or other indicators of status or popularity."

This quote from an EarthTimes article about a study recently released by Meredith Corporation, the media and marketing company that targets American women.

I think they're on to something. Women typically are 'sharers'. If we (and I know I'm part of this bold group!) find something (a product, a service) we like, we talk about it. We tell our friends, our family--we become the biggest advocates. Of course, the opposite is also true. If we have a bad experience, we'll spread that news, too.

The traits of this newly defined 'gamma woman' lend themselves almost perfectly to social marketing. The study shows that we like to communicate, and we don't like to be sold to. We look for relevant content and we're all about building networks to share our info with. Yep, we Gammas are a social marketer's dream.

Not only are these Gamma Women perfect for the world of social media, they're a large group (55 million women!). What an opportunity!

"The report forecasts that, as the social and technological environment in which they exist becomes more and more suited to their communication and interaction styles, Gammas’ influence in the marketplace will continue to increase."

Moral of this story--don't forget to include specific programs and tactics that will appeal to these Gamma Women as you develop your direct marketing strategies.

Marketing Case Study: Email and Segmentation

2008-07-28T08:47:00.001-07:00

Last week we had a nice discussion about the new environmental guidelines for direct marketers, just introduced by the Green Marketing Coalition. One of my suggested additions to their guidelines was to incorporate marketing channels that do not require paper. Another suggested addition was to better target mailings, again to reduce the amount of paper used.

Well, this case study, coming to us from BtoB Magazine is an excellent example of doing both of these things--moving from DM to email marketing AND using segmentation to better target campaigns. Thought you'd be interested.

Background and Initial Results:
E-mail marketing has been a boon to Analog Devices, a manufacturer of semiconductors and supporting products for signal processing applications. Five years ago, the company started testing e-mail marketing against direct marketing and saw an instant winner, said David Kruh, direct and database marketing manager for Analog Devices.

“It cost us about $1 per piece to print and mail a brochure, but it only costs about one cent to send an e-mail,” he said. “Furthermore, e-mail is trackable. ... When we tested e-mail versus direct mail, we found we were getting hundreds-of-times-better response rates for e-mail marketing.”

Fine-tuning the Program:
But as successful as e-mail marketing had been for his company, Kruh knew he could do even better. Working with e-mail service provider Experian CheetahMail, Analog Devices revamped its program, focusing on list segmentation, extensive testing, personalization and the use of affinity analysis, a graphically based data analysis tool that uncovers common behaviors, relationships and characteristics of people who buy specific items.

For list segmentation, Kruh split his list into two distinct groups: one he termed “tire-kickers,” who fall into the hobbyist or student category, and the other more influential group that includes designers and consultants. He did so to help his salespeople gain better-quality leads, he said.

“We’d send out our ‘Solutions Bulletin’ and some months get 3,000 requests for samples, But the sales didn’t follow the requests,” he said.

After digging deeper, Kruh’s team saw that the people who purchased most often were also the ones who clicked through to fewer links. “The more activity we saw in terms of clicks, the less we saw in terms of revenue,” he said. “It makes sense. Who has time to go clicking around a Web site? Hobbyists, students, and people at smaller companies or research facilities.”

Kruh ceased sending direct mail to the unprofitable group; at the same time, he started sending specific, targeted e-mail messages to the profitable group. He also tested dayparting and personalization for both groups. Doing so revealed that Thursdays beat Tuesdays by 15% across the board. He also learned that sending a message at midnight beat midday by 10%, and that sending messages at midnight resulted in one-third fewer unsubscribes.

“The way we see it is engineers come to work, have coffee and read their e-mail to get their days started,” he said. “By noon, things are piling up for them and they don’t have time to read our messages.”

Results:
Personalizing messages—a strategy that Experian CheetahMail encouraged but Kruh initially resisted—has also helped significantly, translating into 10% to 60% higher click-through rates.

The final piece to the e-mail puzzle, Kruh said, has been affinity database analysis, which helps the company figure out, for example, what other parts someone who buys an amplifier is likely to buy.

“In 2007 we ran a campaign to introduce a new sensor amplifier. We got 25% better click-through rates with the affinity populations than with the folks who were previous amplifier purchasers,” he said. “Part of what we believe is people who are already buying our amplifiers know all about them, so the information we are sending is not of as much interest.”

Direct Marketing Links

2008-07-25T08:36:00.001-07:00

Email Trends through 2013
From our friend, Daryl Clark of Internet Search Marketing, comes this link to a webinar (and as an added bonus, a white paper from the Economist) that provides trends and best practices for email marketing. Very valuable info!

Green Direct Mail
Chris Hansen posts an excellent re-cap of the recently announced Green Marketing Coalition on his MarketGreener blog. It gave me some food for thought and is a nice complement to my post yesterday on the same topic.

Deceptive Direct Mail?
Another direct mail topic--this one from the Direct Creative Blog. They've presented an example of an official-looking package with quasi-governmental and tax implications, that, as a matter of fact is a mortgage solicitation. Blog author, Dean Rieck, poses the question--is this deceptive direct marketing or a clever sales tactic? I've posted my opinion by commenting on his blog...

Leading with Your Heart, and Succeeding in Business
Almost directly opposite from the type of misleading advertising discussed above, is this post from Lewis Green. He discusses his "business model that places people's happiness before all other business metrics, including ROI, profits and revenues." Hint--not only is this an effective way to do business, but you'll sleep great at night, too.

Real-Time Data Mining
A very interesting perspective can be found on the Customer World blog. The author, Sivaraman Swaminathan, discusses the need for companies to act quickly--and appropriately--on customer transaction information. I look forward to the day when companies use what they know about us to really serve us (and not just to sell to us, or in the case on the blog-post--collect from us).

Have a great weekend! I'm planning on enjoying some good Oregon microbrews (even though I'm a wine lover, but heck, the Brewfest is this weekend!).

Green Direct Marketing: An Oxymoron?

2008-07-24T08:32:00.000-07:00

I'm always a bit frightened when direct marketing, as a topic, makes the NY Times. Usually, the piece will not be all that supportive of our industry. A data breach, identify theft, how to stop your junk mail--those are the usual suspect topics.

So, this article, that extends some grudging respect towards a group of direct marketers who are trying to bring an attention to the environment to the direct marketing industry surprised me a little bit. From the article:

A group of direct-marketing companies, along with a handful of their corporate clients, are banding together to make an inherently unsustainable practice at least a little bit greener.
The group calls itself the Green Marketing Coalition, and it includes Microsoft, Washington Mutual and OptimaHealth. Not all the companies involved are big mailers, but they share the sentiment that there should be best-practices guidelines for the direct mail business, which has been vilified even before global warming became a hot topic.
“This industry just didn’t have any real green standards,” said Spyro Kourtis, president of the Hacker Group, the Seattle direct-marketing company that headed the Green Marketing Coalition. “So we figured we could set some that vendors and clients and others could all live with.”

So, what exactly are these guidelines, brought to us by the Green Marketing Coalition? I'll summarize:

Use recycled paper, chlorine-free preferred.
Choose vendors with internal environmental initiatives.
Use UV Printing presses and comply with hazardous waste disposal standards.
Improve list hygiene and data management (now, that's one I can get behind!).
Proof and edit using PDF instead of hard copy print-outs.

I hate to say it, but I have to agree with this NY Times commentary on the guidelines...

So far, the coalition’s guidelines are long on earnestness and short on truly new ideas.

The cynical side of me is also a little mad that the group called the following "guideline" a guideline.

"Companies can benefit from the tax savings associated with going green. Go to www.cted.wa.gov/site/974/default.aspx for more information."

I'd like to propose that more guidelines (real guidelines!) be added. Here's my start:

Make sure that you've explored all channels, with an emphasis on those that don't require paper. Social marketing, e-marketing, telemarketing, mobile marketing, etc. all have a place in the direct marketing strategy. Get out of that direct mail rut.
Get a handle on customer preferences--try to find out if someone absolutely hates receiving postal mail (you might actually ask them). If they don't want junk mail, stop sending them stuff, immediately.
Do a better job of targeting, and commit to it. Make it your goal to cut out 1/3 of those you're mailing, just by targeting the right people. We've built models that cut out over 30% of non-responders, with no lessening of responses/sales. Yes, it can be done.
Test smaller, less elaborate formats. Do you really need the letter, the brochure, the call-to-action card, the response envelope (does anyone use these anymore?) etc?
Let your people tele-commute. Do they really need to be sitting in your cubicle to do their job? Let them save on gas and stress by working from home.

I love the fact that this industry is looking for ways to be more environmentally-friendly. Every little bit helps, right? My hope is that this is just a start and that we'll see more initiatives, with quantifiable goals.

Direct Marketing Employment News

2008-07-22T11:59:00.000-07:00

Just yesterday, Bernhart Associates published their quarterly survey results that gauge the state of the direct marketing industry, in terms of hiring and employment trends.

No surprise--the news isn't great. From the press release:

The direct marketing employment outlook has taken a turn for the worse with employers planning more cutbacks in hiring this summer, according to the latest Bernhart Associates employment survey.

According to the survey, 47% of the companies responding said they plan to add to staff during the current third quarter, a decline of 7% from last quarter and the first reading below 50% since 2002.

But, for those analytically-inclined specialists, and those in sales or e-commerce, there is some good news:

"We always ask companies to list the positions they expect to fill during the coming three months," said Bernhart (Jerry Bernhart, President). "This time around the list was top-heavy with analytics, with both sales and e-commerce related openings a close second."

I'd love to hear if these survey results mirror what you're seeing out there.

Case Study: Small Business Website Optimization

2008-07-21T09:08:00.000-07:00

As a small-business owner, I thought I would focus today's case study on a common challenge for small businesses. How does a small business boost website traffic, hence boosting overall visibility?

Your company website is the best way for prospective customers to get to know you. Plus, an informative and well-designed website can be a great equalizer. A small business is lucky in that if they are clever enough, and if they spend their time and money wisely, they can build their web presence to make them compete very effectively against huge corporations.

Today's case study is brought to us from Marketing Science, a marketing consulting firm that focuses on helping small businesses realize success. This case study and others can be found on their website. I like this story because it provides practical advice about how a small business can boost organic search results.

Client: Paage Et Cie Ltd.

Industry: Personal Management & Organization Services

Business Problems: Although a highly successful small business for 15 years, the 3 year old company website was receiving near ZERO natural (organic) search traffic.

The company's Internet presence was invisible to prospective clients. The website infrastructure (Meta tags, headings, keywords, etc.) was poorly designed from an Online marketing standpoint and was not optimized at all for search engine traffic or search engine marketing effectiveness.

Problem Summary:

Site was designed to be visually appealing , but unknowingly at the expense of marketing performance
No Meta Tags
Used One Title tag for all 25 pages of website - a major "no no"
Traffic was poor, only receiving referral visits by word-of mouth from a few friends and associates
Very low keyword density

Goals: Management wanted to maximize growth potential Online by adding PPC (pay per click) search marketing and SEO (Search Engine Optimization). Client also wanted increase sales of a booklet Online from the website.

Marketing Solution: Marketing Science implemented a full service Search Engine Optimization and Search Marketing Campaign. Setup and optimized Google AdWords and Yahoo Search Marketing accounts for pay per click advertising, including:

Create and implement a website marketing plan (SEO, article marketing, content development strategy, etc.)
Create website content that uniquely positions client
Keyword research, keyword selection, keyword optimization
Search engine optimization & search engine marketing techniques
Integrated ecommerce shopping cart in client website to sell booklets from website

Results to Date: The results since the late summer of 2007 have been impressive. Website went from receiving roughly 50 unique visitors per week to an average of 42 unique visitors per day! Booklet sales have also increased by 330%.

Direct Marketing Links

2008-07-18T08:54:00.000-07:00

In The News: Virginia Gov. Announces Telework Policy
If you're feeling green, check out this article from Dan Smolen's Sturdy Roots blog. It talks about how the state of Virginia is advocating that people work at home to save on gas, and to increase productivity. I couldn't agree more, and I hope that more states and more big businesses follow this example. My personal experience in home officing (which I've done throughout my career) is that I get a ton more done--fewer distractions. Plus my dog and cat are happy to have me here :)

Getting things done--one analyst's approach
On the topic of productivity, this post from Steven Noble, an analyst from Forrester Research, was interesting to me. He discusses his "getting things done" or GTD method of completing tasks. I think that this is a method we all pretty much use, but only a research analyst could quantify it and break it down for us! I did relate to the point he makes about being paralyzed if a particular project looks too daunting. Instead of being paralyzed and trying to tackle the whole thing, Steven advocates breaking it down into parts and tackling critical tasks that will bring you closer to your main goals, first. I like this practical approach!

Companies CAN'T "join the conversation"
So says Peter Kim. However people CAN! His post talks about the realities of corporate blogging. "If you or someone in your company is thinking of blog authorship behind the curtain of a corporate logo, stop and make sure that your organization is actually ready to get social with the outside world. Because a company can't participate in a conversation, only individuals representing a company can." As usual, Peter Kim is absolutely right.

Welcome home, indeed
I love to read about stellar customer service. This post from the Brains on Fire Blog was so well-written that I thought I, personally, was enjoying the superlative hotel stay (at the Greenwich Hotel in New York) that the author experienced. You know, it's all about doing what you do just a bit better. Making the customer delighted--in this case delighted enough to share with the world.

Experience Engineering
On the topic of customer service and how invaluable a superlative customer experience can be, this Customer World post is pretty interesting. It attempts to break down the customer experience and how this translates to real value. Great food for thought.

RRW's Marketing Information
Final mention goes to our very own collection of white papers, guides and checklists that we've put together mostly for direct marketers. I spent some time this week revamping our online form and making sure that all of our docs were included. Please come visit and let us know if you'd like any of this information. We love to share.

Customer Segmentation Information

2008-07-17T09:35:00.000-07:00

You know that we're firm believers in the power of customer segmentation. We've even written a game-plan that we're happy to share with you. If you can target your segment with the absolute right-on message, creative that resonates with them and an irresistible offer, your direct marketing campaign results will reflect this extra work.

Sometimes segments are based on the products a customer purchases from you. Sometimes they are more related to what's going on in the customers' life. As a marketer, you rarely have significant insight into your customers' and prospects' personal life. Luckily for us, there is a wealth of external data and experts who know how to mine that external data to make the job of really understanding our customer segments a heck of a lot easier.

Check out this article from DM News. Four data experts have each focused on a niche segment that they have experience in. They provide some pretty valuable insight into how to best message to each group. Here are the groups discussed in the article:

Bob Stein of Trinity Direct talks about nuances in targeting the Catholic market (hint--they are older, highly mail-responsive and like to donate).
Amy Benicewicz of ListBargains: "Marketers seeking a target audience of luxury lifestyles and frequent travelers fare very well with prospecting to Double Income No Kids (DINK) families." Caveat--this group is hard to target (based on available data), but if you sell luxury goods, or are in the travel/tourism industry, you need to reach the DINKs.
Sandy Ostrander of ListSolutions shares her perspective on marketing to military families. It's a growing group that is under-served and may just represent an untapped opportunity.
Rob Odri of ALC talks about marketing to gay and lesbian consumers. The key takeaway here is that this is a large group of people (they command $1 billion in spending power) who also tend to be early-adopters AND they share their views with their friends and family. The opportunity: many mainstream marketers tend to ignore this group.

Altogether some interesting information on four discreet segments, and some good food for thought. If you'd like more info on Segmentation, and specifically, an overview of the approach that we take, we'd be happy to share our White Paper, called: Advanced Segmentation Game-Plan.

Who's applying for credit cards?

2008-07-15T08:21:00.000-07:00

In talking to my friends and colleagues in the direct marketing industry, the story remains the same. We're all seeing a definite slow-down. Our clients aren't doing as much as last year. Coupled with declining marketing activity, the industry continues to consolidate (see last weeks' announcement of Acxiom purchasing ChoicePoint's Database Marketing unit which has caused a round of lay-offs).

The credit card industry typically relies heavily on direct marketing strategies to acquire new customers. I definitely think that today's banking issues (which I won't even attempt to get into here....) are a big part of what is hurting the DM industry. Found this research that shows how the mix of credit card applications has drastically changed since last year on the DMA's website.

Total Credit Card Applications Submitted Online Date: Q1 2007 vs. Q1 2008 Total US – Home/Work/University Locations Source: comScore Online Credit Card Acquisition Benchmarker
	Number of Applications Submitted Online (000)
Applicant Type*	Q1 2007	Q1 2008	Percent Change Y/Y
Total	9,890	10,672	8%
Subprime	5,174	6,716	30%
Prime	4,716	3,956	-16%

*Subprime defined as individuals having the equivalent of a FICO score of 660 or less;

Prime defined as individuals having the equivalent of a FICO score greater than 660.

The research was conducted by ComScore, Inc., a leader in measuring the digital world.

The fact that the number of subprime apps submitted is rising and prime dramatically falling really is a sign of these scary economic times.

I welcome input on how your business is running. What are you doing to survive, and perhaps even thrive in this economy?

Case Study: Creative DM Package Wins

2008-07-14T09:03:00.000-07:00

You know I've been reminding myself that this IS a direct marketing blog, after all! So, I thought that this Monday I would bring you a traditional direct marketing case study. We'll focus on the importance of format and creativity in a B2B direct mail campaign.

From Craig Huey's Creative Direct Marketing Group, here is their case study about work performed for 800 Direct.

“Bumpy” package generates most-ever leads for 800 service!

The marketing challenge:
800 Direct needed to get its message into the hands of key telemarketing managers and marketing directors of companies nationwide. These individuals are extremely busy, hard-to-reach, and inundated with promotional materials.

In order to bypass front office personnel and reach decision makers, this piece had to have a high perceived value that would trigger response.

The creative solution: Craig Huey and his staff created a “bumpy” package with an attention-getting envelope featuring a humorous cartoon showing an incompetent telemarketing operator.

The envelope asked the provocative question,“Who’s really answering your in-bound calls?” It also teased the reader with the promise of “Telemarketing Innovations” and a FREE checklist of 8 Costly Telemarketing Blunders.

Inside, the letter took an informational marketing approach that explained the innovations, all fully detailed in a FREE Special Report, 44 Cost-Cutting, Profit-Making Telemarketing Breakthroughs, Strategies and Innovations".

An enclosed rolodex card and note pad created a “bumpy” package and also added value.

The results:
Said Matt Epstein, Director of Marketing: “Thanks to your creative direct marketing promotion, we have never had so many leads. We can now begin establishing a relationship with these prospects and, hopefully, convert them to new clients in the near future!

“You have done great work and we would have no problem highly recommending your agency.”

This piece was so successful it garnered both the Target Marketing Best of Direct Marketing Award and the West Award of Merit.

Good work! It's always important not to forget the basics of direct response marketing. A strong offer, a message that resonates with your target audience and fun creative--all direct marketing fundamentals.

Direct Marketing Links

2008-07-10T09:10:00.000-07:00

Saying No to the Boss
So happy to find Susan Willett Bird's blog about interesting conversations. This post gives some good advice, especially if you are a Type A overachiever who can't turn down a project. You know the type--the one who thinks that the only way something will get done correctly is if she does it herself (yikes--I resemble that remark!). Interesting read.

A Freelancer's Survival Guide
From Forbes, check out this freelancers guide. In this economy, more and more people are becoming entrepreneurs (at least temporarily). The article provides some great and quite practical tips on how to be a successful freelancer.

Corporate blogging's mixed bag
If you're considering starting a blog or if you're simply interested in what a blog may be worth to a corporation, this Viral Garden post is a must-read. Is it any surprise that many large companies don't understand that a blog is NOT simply an extension of their website--that it's not simply an arena to advertise their stuff?

Direct Marketing in India
I'm kinda proud of the small conversation we started in our very own Ask Direct Marketers blog about the state of Direct Marketing in India. The contribution by one of the leading marketers from India, Nishad Ramachandran, really is what makes this post worth reading. I just love how the internet and blogging in particular has shrunk this world. Who knew that I would be having discussions with thought leaders from India. How cool is that???

The direct mail envelope quandary: plain or bold?
Sticking with the direct marketing theme, I enjoyed this article from the Direct Creative Blog. It helps answer the question of what type of envelope direct mailers should use. (The answer in a nutshell--test both plain or bold, but plain typically outperforms bold.) Good stuff!

Have wonderful weekends, all!

Zappos does it again!

2008-07-10T08:31:00.000-07:00

I continue to wonder why Google ranks our blog #1 when you search for direct marketing blogs...We tend to veer off the topic of DM quite a bit. Yet, in order to make any direct marketing project successful, so many other pieces of the puzzle need to be in place.

For example, if, say, you have horrible customer service, then no matter how awesome your direct marketing campaign may be--no matter how many calls you generate--your sale will never happen if the prospect is treated poorly when they call you. Hence today's focus on customer service.

Some months ago, we wrote about the corporate culture at Zappos. In a nutshell, they make doing business fun! They also empower their employees to keep their customers happy. Zappos has taken customer service to a level that most firms can only dream of.

Well, I continue to be amazed and impressed by this online shoe retailer. I found this article from Harvard Business that explores one extremely innovative reason why Zappos is able to maintain and cultivate their culture of excellence.

They are so committed to retaining committed and dedicated employees that they are willing to bet $1,000 on each new hire. From the article:

"After a week or so in this immersive (training) experience, though, it’s time for what Zappos calls “The Offer.” The fast-growing company, which works hard to recruit people to join, says to its newest employees: “If you quit today, we will pay you for the amount of time you’ve worked, plus we will offer you a $1,000 bonus.” Zappos actually bribes its new employees to quit!

Why? Because if you’re willing to take the company up on the offer, you obviously don’t have the sense of commitment they are looking for. It’s hard to describe the level of energy in the Zappos culture—which means, by definition, it’s not for everybody. Zappos wants to learn if there’s a bad fit between what makes the organization tick and what makes individual employees tick—and it’s willing to pay to learn sooner rather than later. (About ten percent of new call-center employees take the money and run.)"

What a novel and smart idea. I'd be willing to bet that the $1,000 is a drop in the bucket if you consider money, sales and time lost if a non-engaged employee is working with your clients. And, remember that we're talking about customer service/call center jobs here. That $1,000 is a lot of money to all of us and a big chunk of change to these employees.

I think the challenge here is to think about new ways that we can change our business. How can we go outside of what others are doing to reach new levels of excellence?

Mobile CRM Tips

2008-07-08T08:53:00.000-07:00

Mobile CRM is becoming a necessity for field sales and companies with service personnel. Companies know that they need to enable their employees who are out in the field servicing customers to access company information in real-time--place orders, ask questions, report results, etc. However, as is usually the case with CRM systems, there is a lot of technology out there... How does a company know which mobile CRM solution will suit their specific needs?

This article, Six tips for mobile CRM success, helps narrow the playing field. It provides some very practical tips on what you should be considering as you shop for mobile CRM technology. I've summarized (with many quotes from the author) each of the six tips.

Plan ahead. Consider today's requirements and try to anticipate tomorrow's needs. The author suggests not locking yourself into proprietary software or hardware operating platforms. "As systems such as BlackBerry, Windows Mobile, Apple iPhone and Google Android develop, you can be sure your remote users will be asking you to provide support for their devices."
Focus on the real world requirements. "Avoid getting caught up in fancy features and applications that will not be used in a mobile environment. Be realistic and understand what information and transactions your users will actually need to access in their mobile CRM system."
Does the mobile CRM application meet your security requirements? "The system should meet the “Ooops - I left my mobile device in the taxi” test."
Ease of navigation. "Mobile CRM operates on small devices with small screens and small keyboards. It is crucial to ensure that the system is easy to navigate in order to encourage a high adoption rate"
Speed of implementation. This is a big one. Make sure that you know exactly what your vendor has committed to in the way of implementation timelines before you commit to their solution.
Is it scalable? Make sure that the system can grow as your business grows. Also make sure that it can handle the amounts of customer data that your firm collects and stores.

Kudos to author Christian Wettre of W-Systems for these practical tips.

Case Study Monday: Direct Mail and a Database

2008-07-07T08:51:00.000-07:00

It warms my heart to read a case study that relies on very traditional direct marketing tactics such as a marketing database coupled with relevant direct mail. Plus, it's kinda fun to start off a Monday with a cute baby pic!

I've provided the key points, but you can check out the full case study from Harte-Hanks, a leading database services provider.

Situation Analysis
A premiere infant formula manufacturer was concerned about eroding market share. Harte-Hanks was selected to design and construct a sophisticated database marketing program to communicate directly with their target market - expectant and new parents.

Business Objectives
Because of this infant formula producer's sensitivity to the importance of breastfeeding and the recommendations of physicians, the company needed a way to speak to their audience while maintaining the involvement of the patients' doctors. Their goal was to initially stop erosion and ultimately grow market share in the midst of heavy competitor advertising, whose TV and mass media strategy ignored the doctor/patient relationship.

Marketing Solution
In conjunction with the manufacturer and its ad agency, Harte-Hanks developed a club for expectant/new parents. Parents can obtain enrollment forms at their doctor's office and receive a series of mailings with important information on pregnancy, childbirth and parenting. Mailings included educational newsletters, tie-in partner offers and live checks for product purchase.

Communications are varied based on individual responses to surveys mailed to them. A sophisticated variable survey logic program created mailing packages based on individual respondents' needs and a variable letter library ensures that letters were relevant to specific consumers' situations and timelines.

Results
The club achieved the goal of stopping share declines and ultimately growing the company's market share. An additional benefit is the loyal consumer database available for communications. New product introductions, company news or critical product information can be disseminated quickly.

The club has evolved over the years and continues to speak to members based on individual needs. It truly allows for a one-to-one dialogue.

Ah, the perfect direct marketing program. A targeted, niche audience. Relevant offers. Timely communication. It's no wonder that the club was a success. And, I just think about the value of that customer relationship, over time. Good stuff and kudos to Harte-Hanks.

4th of July Hot Links!

2008-07-04T09:00:00.000-07:00

And, yes, I do mean hot links--the kind you put on the grill! In the spirit of this holiday, I thought I would veer away from direct marketing links today and focus on what's important--this holiday!

Grillin' and Chillin' for the 4th of July
First up is this post from ask.com. In addition to listing America's top 10 favorite pies (Apple is #1), the post relates other interesting food facts for the 4th. No surprise--hamburgers are preferred over hot-dogs.

Disney Family
Found this great 4th of July resource that provides all kinds of July 4 info. From barbeque recipes, to fun and patriotic cup-cake ideas to crafts that the whole family can do. Neat resource for today's festivities!

Fireworks Photos
To get you ready for tonight's festivities, take a look at this collection of awesome fireworks photos. Amazing!

Another Collection of July 4th Links
Finally, if my small (but mighty) collection of July 4th info just isn't enough for you, Wordpress has kindly also collected July 4 blog posts. There are pages and pages of blogs (I love the fact that there is so much great info out there, don't you?) focusing on today, the 4th of July.

Happy 4th! Enjoy your barbeque. And, know that I, unlike most Americans, personally prefer hot-dogs to hamburgers... Just have to be different, I guess :)

Targeted Social Marketing

2008-07-03T08:15:00.000-07:00

This article's title really intrigued me: Trust-Based Targeting.

Hmmm. Now, as a direct marketing specialist, I'm an expert in targeting. I'm aware of the wide array of data that is available to target both customers and prospects, B2B and B2C. So, what the heck does Trust-Based Targeting refer to? Clearly, I had to read more!

It's an intriguing concept, and one that might actually help with the eventual measurement and better targeting of social media. The article outlines mEgo's approach that allows consumers to choose the kinds of messaging and targeting behaviors that fit their own needs and interests, all in the area of social marketing.

The premise behind mEgo's offering is that their users self-create some pretty elaborate and detailed profiles. Then, users decide which parts of their profiles can be shared to advertisers. Finally, users are paid (I believe through donations to their chosen charity) when advertisers use their data for targeting.

"Going back to how mEgo intends to roll out our advertising strategy: We will provide a transparent description of how users’ data is used and, most importantly, allow users to filter which information is publicly available and used for targeting. MEgo members will have complete control of what portions of their profile they’ll permit us to use to target ads. For example, a mEgo user interested in music may choose to view only ads for indie bands generated from a list of their favorite musicians. As an extra step in transparency, we also literally show users the keywords our platform generates for serving the ads they see."

The article contained an excellent case study for an Adidas social media campaign. It illustrated the viral nature of m'Ego's offering and is probably the best illustration of this new targeting concept.

I can't wait to see how (if) other marketers adopt this model. I salivate over the rich data that I may be analyzing in the near future!

But I think that the key things to remember here are trust and transparency--two essentials to this new offering.

"The lesson learned: It is essential that brands earn and keep consumer’s trust in order to be able to effectively market to them. Without trust, the greatest marketing system in the world can’t work. Set the expectation of complete transparency between marketer and consumer, and you convert your consumer from being fearful into being an advocate."

Generosity Wins in Advertising

2008-07-01T08:20:00.001-07:00

This post by Lewis Green on his Lead with Your Heart Blog really got me thinking: Putting People First is Good Business.

In the article, Lewis talks about how important it is to give, both in life and in business. He says: "Sharing ourselves and what we know is the best way to build a trusting relationship, and it doesn't hurt profits."

That's a philosophy I think most bloggers and others who dabble in social marketing believe in. We understand the importance of contributing to the community, and we enjoy the benefits (new friends, great information, business contacts) we reap as a result of that contribution. Well, I was interested to see that this 'Give and You Shall Receive' mentality is also working in advertising and business in general.

Check out this article from USA Today: Winning ads really work for consumers.

The article provides a review of winning advertising campaigns from the ad industry's annual competition, the Cannes Lions festival in France. Interestingly, the winning campaigns all shared a common theme. They offer a real, tangible benefit to the consumer, with absolutely no strings attached. From the article:

"Now some advertisers are trying to create ads that offer consumers something useful with the brand message — something they'll seek out — instead of trying to bombard them with ads they can't escape."

This is a concept that certainly isn't new (although it kinda feels that way). Let's review a few of the winners as the best illustration of this concept.

Uniqlo's "Uniqlock": Japan's Uniqlo, a global retailer with a flagship store in New York, won the top award for new idea with a downloadable digital clock with video of dancers in Uniqlo clothes. It can be used as a PC screensaver or a mobile screen, or embedded in a Facebook page. The clock, which has sleep and alarm modes, has been downloaded by 32,000 people in 85 countries.
Reebok: The social-networking site goruneasy.com lets runners log their runs, chat, post pictures and find running routes in new cities.
Axe: The men's personal care brand offers a mobile application on its Japanese website to put on phones sexy images, ring tones and an "alarm girl" who messages at times set by the user. The messages get racier with each use.

All of these winners understand that if they provide their customers with something that the customer finds valuable, they'll win, too. In these examples, the company had to go on a limb and invest in development of some pretty cool giveaways, on the simple hope that by bringing value to their customers, they'd benefit in the end. Their gamble is that they'd gain new customers and increase loyalty from existing customers. Clearly the gamble paid off.

This concept is something that all businesses can apply. Think about what you can offer to your customers and prospects that will be valuable to them. Make it good. Make the giveaway fun, and interactive if you can. The better it is, the more your customers (and prospects) will talk about you. Heck, they may even share it with their boss, or even better, with their spouse!

In a nutshell, be generous. Just think about all of the good karma you'll build up!

Case Study Monday: eROI and Travel Oregon

2008-06-30T08:47:00.000-07:00

Thought you'd be interested in this case study, brought to us by eROI, a leading interactive agency headquartered right here in Portland. Not only is the case study quite interesting, but I wanted to share some 'link love' with eROI as a THANK YOU for inviting me to their awesome party last week. These folks know how to have fun--what a creative group!

You can download the entire case study at their website, but the following provides highlights of the emarketing/newsletter work that eROI did for Travel Oregon.

"Travel Oregon" E-newsletter
The Travel Oregon consumer marketing department has been publishing a monthly electronic newsletter since October, 2005. The newsletter's goal is to keep Oregon vacations top-of-mind with potential visitors across the country and worldwide by providing subscribers engaging features and editorials of unique Oregon experiences, all wrapped in an evocative creative design. The newsletter is an extension of the Travel Oregon brand, bridging the gap between the inspiration Travel Oregon Magazine provides and the trip planning assistance at TravelOregon.com.

Background - Cautious Optimism
Being this was a first time effort in consumer outreach, Travel Oregon remained cautious and conservative in its expectations. Even with confidence in its engaging content and evocative design, it was unknown how consumers would react to a previously non-existent communication channel from Travel Oregon. In addition, Travel Oregon expected to lose upwards of 30% of its subscriber list due to "bad" email addresses or lack of interest. It is with great pleasure that we provide the following observations from the October, 2005, Travel Oregon newsletter.

October 2005 Issue - The Beginning
The October newsletter marked the first active direct communication with consumers. Its goals were to:

Introduce the 'Travel Oregon Newsletter' and request consumers update their preferences, including contact information and interests.
Provide information on timely fall events, with a focus on the Oregon Bounty campaign and the Lewis & Clark Bicentennial celebration.
Determine "best day" to communicate with interested consumers.
Update and "clean" database to only communicate with people interested in Oregon as a vacation destination.

Results
Download the case study at eROI's site for full Bounce, Unsubscribe, Read and Click rates, by day sent. Here is a summary:

Overall, Travel Oregon Open rates (ranged from 14-31%) are slightly higher than the industry (based on a recent industry study performed by eROI). Click rates (ranged from 7-9%) appear to be close to double on Wednesday, slightly higher on Thursday and Friday and over twice as high on Sunday compared to the eROI study.

The October issue appears to have resonated exceedingly well with consumers both from tangible and intangible observations.

Tangible Observations: One of the toughest challenges facing marketing today is that consumers are inundated with a barrage of advertising in every medium--from print to TV to email. The ability to stand out and build a long term relationship with consumers thus becomes increasingly difficult and even more important.

Intangible Observations: Measuring consumers' subjective reactions to the content and creative is often the best measure of a campaign--it is also the most difficult measurement to ascertain. however, based on what consumers are saying about the newsletter (when forwarding it to friendds), it is evident that the newsletter is a hit!

Summary
As stated before, consumers are being bombarded by marketing messages from many different channels. Travel Oregon and eROI work together to execute on their shared belief that the best way to cultivate a sustainable long term relationship with a consumer is to provide them with information based on their interests.

Segmenting and disseminating information based solely on an individual's preferences makes the newsletter highly relevant and enables Travel Oregon to meaningfully engage those "hand raisers" to sell them their Oregon dream.

Kudos to both eROI and Travel Oregon for making the first newsletter a success, and for being strategic to implement testing within the first edition!

Favorite Links This Week

2008-06-27T10:25:00.001-07:00

This week, let's start out with a great one! Check out Robert Rosenthal's Freaking Marketing blog post from earlier this week. Let us warn you, however, that the video sports some pretty explicit language, so if you're not into having to hear the F-bomb a lot, don't listen. It is a very funny piece from comic, Bill Hicks, who is on a major rant about why marketers should kill themselves. In the video, Bill outlines how we see opportunity in pretty much everything, then try to build a marketing strategy around it (my words, not his). This one will get you laughing for sure!

On a semi-kinder-gentler note (well, at least he doesn't mention killing anyone), Ron Shevlin's Marketing Whims blog post this week talks to how we tend to over-use whatever seems to be the word du jour. Ron specifically notes these three words that he sees marketers, and business-people overall, using way too much (in his humble opinion): death, disruption, and innovation. As usual, Ron provides his opinions with honesty, candor and a dry wit. His points are well taken, and the thing is, words do lose their true value when people over-use them. Remember when the concept of CRM was first introduced? Then, how it came to be used in every sentence? Pretty soon it came to mean everything -- not a specific discipline, solution, etc. Well, the reality is that CRM is different things to different people . . . but by making it a buzz-word, the idea of it becomes very blurred and diminished greatly in it's interpretation (i.e., everything is dubbed CRM and the word loses its value). So, as usual, Ron's right!

On a more positive note, Lead From Your Heart's blog-author, Lewis Green, tells us how to deal with the summer doldrums that occur in marketing every single year. In Lewis' post, "Friday Mornings in the Dead Zone," he talks about his strategy to combat the summer doldrums and how he plans on getting more than one email to come in at a time and his phone ringing robustly again. As entrepreneurs, I think we can probably all relate to this post, and it'll be interesting to follow the comments to see what ideas others have on bringing in more business in slower times.

We hope you enjoy these links . . . and Happy Weekends to all!

DMA in Las Vegas

2008-06-26T08:54:00.000-07:00

Most direct marketers are aware of the big conference for our industry--that is the Direct Marketing Association's annual event, always in October, always filled with networking and lots of partying.

What this event (sadly) is NOT known for is the quality of the education and seminars. The reputation in the past has been that big firms that support the DMA (by sending hordes of employees to the show, and by renting those mega-size multiple-booth exhibit spaces) seem to land all of the choice speaking gigs. And, you know what that results in--boring Powerpoint speeches that typically are no more than a long plug for the direct marketing vendor.

You tend to see the same speakers from the same companies, year after year, after year.

Well, dare I say it? It appears that the next conference just might be a welcome change! Yesterday's DMA press release about the event touts (gasp!) a line-up of client-side speakers. Microsoft, Wyndham Worldwide Hotels, Aetna, The Hartford, Liberty Mutual Auto Insurance, AT&T. Some big marketers, there--and from a fairly wide variety of industries, B2B and B2C.

Hmmm. I may just spring for the full boat admission this year!

Direct Marketing is changing so much. We are adding so many new disciplines--mobile marketing, social media--to name just two examples of what I'm talking about. And, all of us are grappling over how to incorporate these new channels (or even integrate the traditional channels). If the DMA can step it up, turn their conference into an exciting event where real learning (and not just lots of parties) happens, they can really grab lots of new members from the emerging disciplines.

I'm already looking forward to October. Viva Las Vegas!

Don't Count Out Newspapers!

2008-06-25T07:30:00.000-07:00

Who would have thunk that with all of the electronic ways to get your news that the standard newspaper would still be even in existence? In talking with my very hip, younger neighbor the other day, she told me that she just could not start her day without reading her LA Times. She actually leaves home a half-hour early, so that she can fight Los Angeles traffic to get to her office and read it before starting her day. Wacky!

In a recent BizReport article entitled "Why Local Marketers Shouldn't Count Out Newspapers," author Kristina Knight reports that it is indeed too early to give up on this advertising vehicle. Here's the amazing thing . . . numerous surveys over the past few years have reported a decline in newspaper readership. However, 15-29 year olds are increasingly turning to traditional newspapers to get their daily news. The funny thing about this is that I always thought that newspapers would appeal to older generations who grew up with them (and no internet). Now, we are finding that the younger generations are the ones that may sustain this industry now and into the future. See, you just never know!

The World Newspaper Conference recently released a study on this. From the article: "The study indicates that newspapers still have several chances to reinvent themselves, especially with the younger demographic. Researchers surveyed 3500 15-29 year olds in the US, the Netherlands and Finland; they learned that television is still the demo's choice to obtain news but that these younger consumers are open to local newspapers."

It turns out that both teachers and parents are encouraging younger folks to reach for a newspaper and they are doing it. In addition, social networks are also spreading the word about the "coolness" of newspapers. So, it's a situation where new-school is embracing old-school. It's actually quite refreshing in my opinion.

The other interesting idea is that the Millennial Generation (9-22 year olds) have been compared value-wise to the GI Generation (those 75 years old and above). Maybe . . . just maybe . . . the values of the Great-Grandparents have influenced the thought-processes of the Great Grandchildren.

Now that idea alone makes me want to reach for a newspaper!

Corporate Reputation is Important

2008-06-24T08:22:00.000-07:00

It could be that this headline says it all:

"Seventy-One Percent of Consumers Say the Reputation Of Corporate America Is "Poor", But Consumers Will Buy, Recommend and Invest in Companies that Concentrate on Building Their Corporate Reputation"

This headlined an article from Harris Interactive discussing their Reputation Quotient^TM (RQ) survey. I don't think it's any big surprise that consumers don't trust big business. In this economy when we see large firms, (like the big bad oil companies) realize huge profits while the rest of us struggle to pay our bills, the majority of people have had it up to here with big business.

So, if you happen to be a big business, or if you help big firms market to consumers (like we do), what do you do with this news? Luckily, there is an action-plan (and some advice) to be found.

"But despite a slide in Corporate America’s image among consumers, the RQ found that a strong statistical correlation exists between a company’s overall reputation and the likelihood that consumers will purchase, recommend or invest in a company or its products and services."

In a nutshell, be good to your employees. Make honest and fair business decisions. Make sure that your 'goodness' is shared/communicated with the public. Listen to your customers and make them happy. Build your reputation. Do all of that and your customers will like you; they'll buy from you. You'll get more just like them.

Sounds pretty easy, eh?

Here's more from the article, talking about how Google clinched the number 1 spot on the RQ rankings.

What does it take to get to the top? Google provides a case in point. Four years ago, the company was not included among the top 60 most visible companies on the list. But this year, Google rose to No. 1, beating last year’s RQ reputation leader, Microsoft. Google also beat this year’s second-runner-up, Johnson & Johnson, which was the top ranked company, until last year, since the inception of the survey in 1999.
"How did Google achieve this stratospheric climb? The company scores either in first or second place on reputation drivers of financial performance, vision/leadership, social responsibility and workplace environment," says Fronk of Harris Interactive. "For Americans to hold a company in high regards today, clearly more than just profits are needed – companies need to focus on overall corporate social responsibility and how their employees are treated in order to build trust with today’s consumers." It’s interesting to note that Google ranked No. 2 on the social responsibility dimension, but does not even make the top five of companies based on its support of good causes, the environment or communities. "Google received a top-ranking for social responsibility primarily due to their workplace environment," Fronk notes, "demonstrating that corporate responsibility, in the minds of consumers, starts with your own employees first."

If you're interested in how other companies fared in terms of their reputation, you can download the list of the top 60 companies here.

Case Study Monday:Award-Winning Marketing Through Collaboration

2008-06-23T07:16:00.000-07:00

Today, we'd like to feature a case study that demonstrates how two companies collaborated to utilize multiple marketing channels to create an outstanding and award-winning marketing campaign. By receiving these awards, KG Partners and Con-Way Inc. really demonstrate how marketing success can be realized by effectively working together, thus creating a real partnership through true collaboration.

KG Partners and Con-way Win Six Transportation Marketing & Communications Association (TMCA) Compass Awards

KG Partners, a nationally recognized advertising, public relations and interactive agency, and Con-way Inc. (NYSE: CNW), a $4.7 billion freight transportation and logistics services company, today announced that they have won six awards from the Transportation Marketing & Communications Association (TMCA).

The companies won six TMCA Compass Awards -- one of which achieved the Best in Class designation for marketing excellence in the transportation and logistics industry. The awards were presented at TMCA's recent annual conference held in Ponte Vedra, Fla.

"The TMCA Compass Awards are well-respected throughout the industry and could only be won with a strong relationship between our companies and a shared strategic vision," said Tom Nightingale, chief marketing officer, Con-way. "Developing and implementing an effective, results-driven marketing and communications program is vital in an industry as competitive as ours. Recognition from our industry peers is indicative of the type of meaningful work the teams are producing in collaboration."

KG Partners and Con-way received the highest number of awards of all 2008 TMCA entrants. The Compass Award-winning entry, "Con-way Truckload: Driver Recruitment Advertising Campaign," was the recipient of the 2008 Best in Class award. The Best in Class award is one of the two highest honors in TMCA's Compass program. Winners must have excelled in all areas of the judging criteria and achieved a perfect or near perfect overall score.

"The creative marketing, media relations and interactive campaigns KG Partners executed for Con-way last year were extremely successful in helping promote its Con-way Freight, Con-way Truckload and Menlo Worldwide Logistics lines of business as well as its driver career opportunities," said David Goldberg, principal, KG Partners. "Being honored by our industry colleagues at TMCA for our transportation and logistics industry communications expertise makes the success of our campaigns for Con-way even more gratifying."

The six TMCA Compass Awards earned by KG Partners and Con-way are as follows:

* TMCA Excellence Award & Best in Class: Advertising campaign -- Con-way
Truckload: Driver Recruitment: A national print advertisement series running in several driver-targeted publications promoting a lifestyle oriented career and Con-way Truckload as a leader in the industry.

* TMCA Excellence Award: Integrated communications program -- Filling the Seats: Con-way Truckload Q1 2007 Driver Recruitment Campaign: Planning and execution of a 10-week program that included public relations, advertising, search-engine marketing and online advertising resulting in a 166 percent increase of new driving teams hired each week.

* TMCA Merit Award: Media relations -- OceanGuaranteed(SM) Expanded Service Offering from Con-way Freight and APL Logistics: A media relations campaign creating a thought-leadership position in the global supply chain industry for Con-way Freight and APL Logistics, who teamed up to provide a new service offering on the cutting edge of international supply chain management.

* TMCA Merit Award: New media -- Con-way Inc.: Con-way Enterprise Web Site: A complete redesign of www.con-way.com by KG Partners to improve the customer experience, build the Con-way brand and more clearly define the company's business units.

* TMCA Merit Award: Media relations -- Con-way Inc.: Employer Support of the Guard and Reserve Campaign: A media relations campaign to communicate Con-way's support of the National Guard and Reserve and its win of the prestigious Department of Defense Freedom Award -- given to employers who have shown exemplary support of employees who also serve in the National Guard and Reserve -- was developed to leverage the company's thought-leadership position on this issue.

Finally, Con-way Inc. also earned the following TMCA Compass Award for their direct marketing campaign:

* TMCA Merit Award for Direct Marketing Campaign -- Experience The Road Systems Advantage: A video campaign sent to select transportation providers that had a need to extend the lives of their 28-foot trailer fleets. The campaign was developed into a flash module, which served as the focal point of the new Road Systems Inc.(RSI) Web site, a resource for media interest and an ongoing online search presence for RSI.

Friday Marketing Links

2008-06-20T08:28:00.000-07:00

All About LinkedIn
This post from the Emerson Direct Marketing Observations Blog cited some very interesting stats about LinkedIn, and how powerful this social network is. To whet your interest--23 million people participate in LinkedIn! A new user is added every 2 seconds! Overall, LinkedIn is THE place to network, especially for professionals.

Measuring Social Marketing
Last week I blogged on how direct marketers really need to figure out how to measure and track social marketing investments. This well thought-out post from Chris Brogan provides an expert perspective on this very topic. He brings up some interesting ways to look at developing a social media strategy, by including clear-cut goals AND results measurement.

And, for more on this very topic, check out Lewis Green's post on the Marketing Prof's Daily Fix blog. The title says it all: The Real ROI of Blogging.

Word-of-Mouth-Marketing--Explained
I usually find something useful at the popular Duct Tape Marketing Blog. This week, it was a link to the Word of Mouth Manual written by Dave Balter, creater of BuzzAgent. It's free and promises to be not only informative, but a good read, too.

I love Starbucks!
And, just because I love how Starbucks is harnessing the power and the brilliance of their customers by soliciting new ideas (and then actually acting on these ideas!), I had to link to this post from the Damn! I wish I'd Thought of That! blog. Anytime our customers can give us ideas, we need to listen.

Thanks to all the bloggers out there who make my life so much more interesting. I mean that! Have great weekends, everyone.

An Interesting New Use for Mobile Marketing

2008-06-19T11:07:00.000-07:00

We've promised to keep you abreast of the evolution of mobile marketing. Today, in an article from Seeking Media in Australia, it is reported how Strictly Tickets, a next generation marketing and ticketing solution, is using this channel in a new and creative way. As the article puts it, "If you have a WAP-enabled phone, you can buy the tickets from your phone, store them on your phone and swipe your phone at the event. There's no waiting in lines not even to pick up your pre-ordered tickets, just walk straight to the gate." Wow -- we love this idea and application. What a time and resource saver for all involved!

In fact, it's more than a time-saver, it's also better for the environment. "The director of Strictly Tickets, Mr. Tony Lotzof, said today: 'Strictly Tickets will revolutionize mobile marketing and ticketing in Australia. It will finally be affordable, simple and convenient and available to all. It is an ideal application for any promotion or event.' Mobile ticketing and marketing reduces processing costs on both sides. The vendor does not pay for printing and distribution fees, and neither does the customer. Plus, less paper is better for the environment."

So, here we have a win-win scenario for all involved -- the consumer, the business and the environment. And, because this technology works for various types of merchants, it may be the idea that puts mobile marketing on the map.

Think about it -- next time you need that perfect gift for your Aunt Betty, you can send her an electronic gift certificate from her favorite store right to her cell phone . She can then take it to the store (or shop online) and redeem it. Or, maybe you want to take your favorite client to a soccer game? Purchase the tickets on the way to the event and simply walk right through the turnstiles with a quick swipe of your mobile phone.

This application is all about ease of use. In addition, the Strictly Tickets solution "includes a range of outstanding features including Database Creation, CRM and Box Office Software and Push Mobile Marketing giving promoters and clubs the ability to personally market upcoming events to their own opt in clients." Now this is a mobile marketing idea whose time has come.

Information on Using Coupons

2008-06-18T11:44:00.000-07:00

Ah, coupons! A tried and true weapon in any direct marketer's arsenal. And, in this type of economy when just about everyone is trying to save some money, it just might be the right time to revisit incorporating a coupon strategy into your marketing mix.

I came across this article today in this months' issue of Canada's "Direct Marketing Directives": Dispelling coupon redemption myths.

It provides some very handy tips that every direct marketer should be aware of, especially if you use coupons or if you're thinking of doing so. Check out the full article for all ten myths. I've highlighted a couple of them that hit home for me.

Myth #1: Short-term expirations drive immediate sales.
Fact: Consumers need more time. A short expiry often cuts redemption far more than any increase in value can make up.

Myth #4: Targeting the most loyal users of a competitor's product yields the best return on a coupon program.
Fact: Light to moderately loyal competitive users are more likely to try a new product and will do so on a lower-value coupon offer.

Now, as a self-proclaimed analytical geek--someone who loves to be able to work with as much customer and prospect data that I can get my hands on--I'd love to analyze the heck out of coupon redeemers. Try to find out what makes them tick. I'd like to develop an understanding of their lifestage and their demographics to truly figure out which offers will best resonate with them. But, as you know, that's all dependent on capturing the coupon-lovers' data...

My challenge to all of you couponning advocates--how do you track exactly who is redeeming your coupon, without making this cumbersome to the consumer? How can you develop a program where you are capturing individual information so that you can better target future coupon efforts? Rebates are one way, but this approach seems costly. I'd love to hear case studies or good ideas.

Direct Marketing and This Flippin' Economy

2008-06-17T08:02:00.000-07:00

As you probably know by now, we tend to be pretty darn optimistic bloggers! In previous posts, we've discussed how this slowing economy is impacting direct marketing, and most of the press we've posted has said while it's hurting short-term revenues, we remain quite positive about the long-term.

Then, here comes an article from Advertising Age that really focuses in on what the short-term hurting is all about . . . damn their eyes! Seriously, the article makes some very good points. As an industry, us direct marketing types do tend to be more positive than most. However, even we have to admit that things are slowing -- and where they are the slowest is in the area of acquisition programs -- data, new expenditures on prospect database tools, and direct mail.

Well, think about it . . . with the decrease in mortgage lending alone, acquisition has fallen to record lows, especially when you compare campaigns over the last five years or so when lenders were mailing millions of pieces each month and enjoying wonderful response rates. Ah, the good old days . . .

Anyway, the article talks about how direct marketing isn't as recession-proof as we originally thought. Further, loyalty campaigns to existing customers have become more important than ever, as companies seek to keep and grow their existing customer relationships. According to the article, here's what Steve Cone, chief marketing officer at Epsilon, had to say about it: "The focus is now on making sure they [financial services marketers] keep their existing customers as engaged as possible in this type of economic climate, communicating with them regularly and giving them an incentive to doing more business with us and less with anybody else through some kind of loyalty program."

The good news is all of this is that the emphasis on intelligent direct marketing, via the use of analytics, has continued to grow. Now, more than ever, marketers are taking a step back from the frenzied marketing of the past to ensure that their campaigns are targeted and relevant to those to whom they market. The article goes on to quote Gary Laben, CEO of Knowledgebase Marketing. Laben is quoted as seeing a huge increase in the analytics, reporting and insights parts of the business. "It's our largest growth area and is defying all negative economic outlooks," he said. "It's better than anticipated and we did not expect it to be as robust."

When you look at it from this perspective, it occurs to me that the economy has forced marketers to market more efficiently. It is no longer OK to mass market or over-mail to a prospect database repeatedly. Now, in order to be effective (i.e., increase response rates, improve ROI) you've just got to market smarter.

Now, maybe this is just the optimist in us trying to make an economy made of lemons into lemonade. We'd love to hear your thoughts on this subject!

Case Study: How to Grow Your Email List

2008-06-16T08:56:00.000-07:00

We firmly believe in the power of email as a great way to communicate with customers and prospects. The challenge, of course, is how to start the email relationship--how to get your customers and prospects to stand up and say that they want to hear from you via email.

That's why I was pleased to see this article in Direct Magazine (which I've included below) about how Bath and Body Works has solved this problem. Their stats on the value of an email address are interesting, too.

Summary:

Bath and Body Works began collecting e-mail addresses from customers just last January and has since built a whopping file of over 10 million addresses.

“By November, we’ll have the largest e-mail file in all of specialty retail,” said Brian Beitler, vice president of customer marketing for Bath and Body Works, at a presentation during eTail 2007 in Washington, DC last week.

A customer’s e-mail address is worth $18 to the company, Beitler added.

Tactics:

To entice customers to give over their electronic addresses, Bath and Body Works offers free tubes of lip gloss. However, they don’t get it on the spot. The company takes a true multi-channel approach.

The gift comes as an offer in customers’ e-mail boxes that they must take back to the store to redeem, Beitler said.

“E-mail is significantly more valuable to us for a store customer than for a Web customer,” he added.

Results:

“When they’re in the store the first time, they make a $24 or $25 transaction,” he said. “When they come back to the store, what do they do? They make another $24 or $25 transaction.”

Part of the reason for success of the young program is that when customers began coming into the store asking about specials offered online, store managers immediately saw the benefit of getting customers’ e-mail addresses. Another reason is pure store traffic volume.

“We make a lot of transactions,” he said.

Also, bringing customers back into the store is a crucial component of the program because of the effect physical contact has on conversion rates, he said.

“We have found that if an associate touches the customer’s hand, our conversion rate goes to 65%,” he said. “This is compared to around 30% otherwise,” he added.

My commentary:
Wow--these are some awesome results! Lesson learned--think about the absolute best offer you can make (and afford). In this case it was a free lip gloss, and then ongoing great deals extended through their email channel. Think about what you can give away to entice your prospects to come to you. Giving value will get you valued customers.

Great Links!

2008-06-13T09:19:00.001-07:00

Welcome to this week's edition of the Friday Blog Log! Here are our fav's of the week:

Our first link is one from BtoBOnline regarding Green Marketing. You may recall our earlier post from this week on the same topic. There we discussed how important it is to practice what you preach, i.e., you can't say you're a green marketer if you aren't. In other words, don't talk about your "green-ness", then direct market environmentally inefficiently. Makes for some really bad press -- that's for sure! Anyway, back to BtoBOnline . . . in this post, author Carol Krol provides a readout from IBM's presentation at DM Days (going on this week in NY). IBM's VP Marketing, Elaine Lennox presented on this topic and how IBM is moving towards being a truly-Green company. “Don’t think about green in terms of ‘How do I make this product look green?’ ” she said. “You are ‘green-washing’ it in that scenario. Instead, ask: ‘How will I make my company green and make my products green because of it?’ ” Lennox proves that she "gets" it -- and for a company as huge as IBM, that is extremely significant!

Next, we'd like to feature our friend Becky Carroll and her Customer's Rock blog. This week, she's shared with us the results of some recent work that she's done for one of her clients on what makes for 5 Star Customer Service. In this economy, customer service becomes more important than ever . . . and Becky's research proves this out. The biggest "aha" is that the idea of excellent customer service, particularly 5 Star Customer Service, is different to every person. The business who understands that they need to create a phenomenal situation for each individual customer is one that will be looked upon as 5 Star. There are some great comments in this post and we know you'll enjoy it as much as we did!

Finally, check out Ted Grigg's post from this week on how he defines the next great "Big Idea" in marketing. We love Ted's down-to-earth and downright honest attitude. Ted keeps it real, man. In this post, Ted discusses his answer to a client question, "What's Your Big Idea?" Ted's response is accurate and well-put or as Ted says: "I gave my typical response, 'Direct marketing relies upon a set of discovery processes including research, testing and analytics. It is out of this discipline that big ideas emerge.' " Amen! Come on people, there aren't any silver bullets out there . . . or the one Big Idea that will turn your business around. We agree with Ted in that as you are planning your direct marketing strategy in this or any other economy, take it back to the basics and start by using an intelligent approach. If you do this rather than flying by the seat of your pants or just going by your gut feeling (something that we see way too often by the way), you'll weather any economic situation and make each campaign more successful than the last.

Happy Father's Day to all of you Dad's out there! Have great weekends all!

How to Measure Social Marketing

2008-06-12T08:42:00.000-07:00

It's official--Direct Marketers are still trying to get their heads around how to measure an investment in social marketing. So, reports this article from InternetNews.com.

Just in from DM Days, going on this week in New York:

"Here at the biannual gathering of the Direct Marketing Association, where the attendees are used to trading on measurable actions such as click-throughs and response rates, the social media phenomenon is particularly challenging."

So, we're not the only direct marketers who struggle with how to quantify and track social marketing. Ah, it's nice to be validated!

The speaker, Marc Schwartz, a strategy director of the interactive division at the agency DDB, also agrees that such measurement of social marketing efforts is difficult. But, he did provide some tips on how to best use this channel.

"Advertisers taking to the social Web should have a clear idea of their objectives from the outset.
"When you think about how you enter a conversation, it really starts with listening," Schwartz said. Then on the flip side, it's not enough to simply roll out a Facebook application and leave it unattended -- it is a conversation, after all.
Advertising effectively across social media requires marketers to spend time in the community to keep it engaged with the brand.
When the branded presence is tended properly, "social media provides an environment to create deep insight into consumers and their behavior in order to drive engagement and response," Schwartz said."

I think that advocates of social marketing (and this group definitely includes Nancy and me!) would agree that companies cannot ignore this channel. However, at the end of the day, there is still no way to measure the impact.

"To address that issue (of how to measure), Schwartz said that he had contacted some members of the academic community around Seattle, where DDB is based, to pin down the connection between social media advertising and sales.
As he envisions the research, it would be a statistical correlation between sales trends and the different methods of engagement marketers, such as return visits, pass-alongs and downloads.
He said that the academics he's approached have been interested, but that they have not devised a formal strategy."

Well, as a direct marketer who absolutely loves to show a clear and direct return, I'll keep waiting patiently until a valid way to measure social marketing efforts is devised! I think I may be waiting awhile :)

Being Green Direct Marketers: Going the Extra Step

2008-06-11T12:54:00.001-07:00

We've talked about the whole concept of Green Marketing from time to time in our posts, and it's interesting to track this idea as it continues to evolve.

I found an article today that says that it's Not Easy Being Green. In the DM News article, author Melanie Tuazon discusses the importance of practicing what you preach. In essence, if you tout the fact that you want to take part in saving our planet, you've gotta prove that what you do in your business reflects that to the people or businesses in which you target with your marketing efforts.

Here's an example that better explains this from the article: "To create the right perception, mailers and coupons must also be green in both message and medium. “We knew we wanted to do a high-impact piece to get the target's attention,” says Sam Henning, management supervisor of Rapp Collins, regarding a green campaign he worked on for Lipton. “But we thought about how people interested in green living would perceive getting mail. We knew it was a must to use recycled paper.”

See, it isn't just enough to say that you're a green marketer, you've got to prove it in all of your business efforts. This applies to the paper that you use in your direct mail efforts, the coupons that you send to your customers, and the catalogs that you print and mail to your customers. In fact the greenest media are digital -- as you would expect. From the article: "For many, a Web site complements other methods and educates the consumer through games, contests and measurement tools that make green living more accessible. Mobile campaigns are also being explored."

It's interesting to see what companies are doing to demonstrate their ideas for being Green. It's an interesting balance . . . because consumers are going to be wary of any effort that smacks of taking advantage of a passing fad or trying to look like you're green when you're not. The bottom line is that for those for whom this is important, they'll be able to sniff out the real Green direct marketers from those who are simply posing. It'll be interesting to watch how creative our industry can get to achieve Green-ness!

Data Quality Remains Top Priority

2008-06-10T10:43:00.000-07:00

We've seen too many CRM or marketing database initiatives fail simply because the data input to the system was full of duplicate or dated data. And, sadly, we've seen users judge the effectiveness of the database system solely based on the customer data they see, completely ignoring the other functions and system capabilities.

If that first impression is bad, you know that they'll never trust, nor use the new technology. What a waste of money...

That's why we're firm believers in using all of the tools and processes available BEFORE you import any data into a new database. And, this article from B2B Online highlights that point.

"Executing a fine-tuned data-quality strategy is essential in today's multichannel environment. As costs climb across the board due to a weakened economy, having accurate data becomes even more important to ensure targeted marketing messages actually reach customers and prospects."

Yep, actually reaching the people you're trying to target is, indeed, important...

The good news is that the marketplace is starting to realize the importance of data quality.

"Refining customer data quality and access to customer data have emerged as two of the top marketing investment priorities of b-to-b CMOs this year. Half of b-to-b marketers plan to put more resources against creating marketing databases, cleaning up customer data, improving sales force automation and CRM integration, according to Forrester Research in its “B2B CMO Investment Priorities for 2008” report."

This is even better news to the direct marketers (like RRW!) who understand the available data quality tools out there, and who have used the tools for years. From postal processes like NCOA to sophisticated customer data integration techniques that take advantage of large databases retaining multiple name/address versions, there are proven techniques that you can employ to get your data updated, deduped and as clean as possible.

Let us know if you'd like the white paper that we've developed around using these techniques. Just email us at info@rrwconsulting.com and we'll send it right over. It not only gives an exhaustive overview of the tools, but also provides some "Do's and Don'ts" based on our practical (ouch) experiences working with the various processes and vendors in the industry.

Case Study Monday: Increasing Enrollment Using Intelligent Direct Marketing

2008-06-09T07:30:00.000-07:00

Welcome to Case Study Monday. Today, we're featuring a Marketing Sherpa case study on how an educational institution used a solid direct marketing strategy to increase enrollment in it's online program. This is a great example of how you utilize an analytical approach with a multi-channel strategy to get really excellent results! We hope you enjoy this case study.

Summary
Prospects for your products and services can come from anywhere and show up at almost any time. But how do you get those leads in the first place and keep them “warm” once they’re in the pipeline? See how a school’s marketing team doubled enrollment with a nurturing campaign that included targeted online advertising, search, telemarketing and email.

Challenge
Adult distance learners are a difficult demographic for colleges to attract. It’s not like targeting high school students within a certain radius and knowing that many of them will be interested in you simply because of your location.

Ronald Kennedy faced this dilemma when he became Executive Director, Distance Learning and Graduate Studies, Liberty University, about 2 1/2 years ago. He was charged with increasing the college’s distance learner enrollment, which was about 12,000 students when he took over. At Liberty, adult and distance learners are almost one and the same -- 60% to 70% are 30 to 45 years old.

Adult distance learners also can enroll at almost any time, unlike traditional college students who typically start in the fall. And there’s plenty of competition from colleges like The University of Phoenix, which offers courses to working adults online and in local learning centers nationwide.

“It’s a very competitive field out there going after the adult learner,” says Kennedy.

Campaign
Kennedy and his team devised a strategy that focused heavily on online ads, interactive lead generation and Liberty’s brand identity to attract adult distance learners and keep them interested as prospects.

Here are the seven steps they followed:

Step #1. Analyze the demographics of each degree program
Kennedy and his team first conducted a detailed demographic analysis of each of the college’s more than 35 distance learning degree programs.

They compiled this data by:
o Extracting the student profiles of each degree program
o Breaking down profiles by gender, age, household income, etc.
o Matching the demographics to websites for targeted advertising

“We get a lot of traffic that we can’t effectively source back to any particular channel,” Kennedy says. “That relates directly to our strong brand identity.”

Step #2. Leverage existing brand

Next, they took advantage of the school’s reputation for having one of the oldest distance learning programs. The team also leveraged the college’s conservative faith-based approach to education in their messages to stand out from secular schools offering online courses.

Step #3. Target online ads to matched websites
Kennedy and his team ran banner ads primarily on two types of sites:
o Those that appealed to the demographics of Liberty’s online degree programs
o Those that affiliated with education -- specifically online education

“We’re targeting a student who is potentially going to take classes online, so there’s already an assumption that they live online.”

An example of matching demographics to degree: They advertised the school’s seminary degree program -- with a 95% male demographic -- on sites that appealed to Christian men.

Step #4. Qualify the leads

Prospects who clicked on the banner ads were directed to a landing page with a form containing qualifying questions to weed out those who weren’t a good fit. “On the back end, we do append some information to the lead to try to tell us internally who’s most likely to convert more than others, and we’ll gear our strategy in-house to that,” Kennedy says.

Qualifying these potential students was very important because adult learners are expensive leads to generate and nurture. Adult learners often won’t enroll in an online degree program for up to a year after giving their information to Liberty. This means the team has to spend more money to keep the brand name in front of the lead for extended periods of time and they didn’t want to waste money and internal resources on leads that weren’t going to convert.

Step #5. Invest in matching services

Kennedy and his team also spent some of their marketing budget on a service that matched programs with students to develop more qualified leads. Here’s how that worked:

- The service provider used search engine marketing and an extensive keyword campaign to drive traffic to Liberty’s website.
- Then, they collected the demographic and contact information from the leads and matched them with the most compatible degree program at the university.

“We liked the strategic analysis they were willing to provide on the leads we were getting to help optimize and bring in better quality, as well as analysis they did with SEO and purchasing,” Kennedy says.

Step #6. Create landing page

Higher quality leads were directed to the landing page, which included a description of the university and information about it being ranked No. 3 on the Online Education Database’s 2008 list of online universities in the United States.

The landing page asked visitors to enter:
o Name
o Address
o Email
o Phone number
o Good time to call
o Degree program of interest

“The easier you make that form, the more leads you’re going to get,” Kennedy says.

As soon as visitors submitted their information, they received an immediate reply email. They also received a telephone call within 15 minutes. This was an extremely important part of the nurturing strategy because “in this business speed wins,” Kennedy says.

That nurturing strategy consisted of three parts:

Part 1. Phone call
Telemarketing calls were the No. 1 method Kennedy and his team used to follow up with qualified leads.

Part 2. Email
Email was second -- and the longest lasting of the three strategies because it was the cheapest.

The emails contained:
o A link back to the school’s distance learning website
o “Real life” situations in the messaging
o Emphasis on the ultimate goal
o Call to action

Instead of just telling adult learners how convenient online classes were, the team described how inconvenient it was to find a baby sitter after work or to fight traffic to take classes on a campus. They juxtaposed that scenario with coming home, making dinner and then working on the computer for a couple of hours to take classes.

The team also invited leads to call or email the university for more information or to chat live with an admissions counselor or academic adviser online from the school’s distance learning site.

Part 3. Direct mail
Direct mail was No. 3. “We try to hit them with all the different communication styles that are available to keep our name and brand in front of them vs. our competitors,” says Kennedy.

Step #7. Test, test, test
The team analyzed traffic patterns and continually looked for more effective keywords. They also conducted split tests on creative, including the online ads and landing pages.

Testing was especially important when determining how many qualifying questions they should ask a lead, Kennedy says. The team did split tests between longer, more detailed forms vs. shorter forms.

Results
Enrollment in Liberty’s distance learning program shows the campaign’s overall impact: in 2 1/2 years, Kennedy and his team have seen a 108% increase to more than 25,000 students.

Other results:
o 3% to 5% clickthrough rate on banner ads with targeted audiences
o 0.5% to 1% clickthrough rate on paid search ads
o 2% to 5% clickthrough rate on trade name search
o Higher clickthrough rates on Christian sites vs. secular sites

“I think through doing more target marketing and more demographic type research has really paid off in terms of what we’re seeing at the back end as far as enrollments,” Kennedy says.

As for how many questions they should ask a lead, the shorter forms proved to be more successful, Kennedy says. But it was a balancing act. “We’re constantly honing in on how many questions we’re asking vs. how many we’re going to have to qualify.”

Marketing Links

2008-06-05T11:33:00.001-07:00

Here are some of the interesting articles or blog posts we followed this week:

This experiment has got me intrigued! Social Networking Dominator is promising to "use social marketing and social bookmarking to launch a brand new site into the web traffic stratosphere. I’ll be doing this with high speed SEO, social networking, social bookmarking & video marketing." Their goal is make their website profitable within days. You can follow their progress at socialdominator.com. I'll be checking in frequently to see what tricks they have up their sleeves.

For those of you who like free things (and who doesn't, right?), you might want to sign up here and ask for Nicky Jameson's 19 New Rules of Social Media Copywriting. I received the tips and learned some things. If you're wondering how to customize your style to maximize your social marketing efforts, this free report might help.

From PR Weekly, check out this article titled: Executives join social media conversation.
It talks about how executives from a wide variety of industries (from the US Army to Mastercard) are joining in on the conversations, as a way to build credibility and simply because it's now almost a new business requirement. We couldn't agree more.

Although it's a bit like preaching to the choir, I couldn't resist sharing this post from Marketing Prof's Daily Fix blog. Titled, "Are Marketing and Mathematics Getting Married?", it talks about the growing importance of analytics in shaping marketing strategies and direction. Yep, we see that, too :)

Have a great weekend!

Some Thoughts on Social Media

2008-06-05T07:48:00.000-07:00

By now, you know that we love social media. After all, we attend Social Media tradeshows, we author not one, not two, but three blogs and we are avid commenters and Facebook contributors (particularly on our favorite Facebook page, "What I Saw at the Direct Marketing Revolution").

We've even taken the additional step of proposing to be blog authors for some of our very favorite clients. Hey, we think we're pretty good at it -- why not help our customers be good at it, too?

So, today when I came across two really interesting and insightful articles from a couple of fellow bloggers about what Social Media is and isn't, you can imagine that I thought it was definitely worth a blog post to share these musings with our favorite readers.

First, I read Marc Meyer's post on his blog "Emerson Direct Marketing Observations." Marc discusses 11 things that Social Media is Not. As you can probably guess from the title, Marc outlines his thoughts on what social media isn't . . . all in an effort to gain a clearer definition of what it is. He brings up some great points . . . it's not static -- it's ever-changing; it's not calm -- it disrupts and is meant to disrupt; it's not many-to-many and not necessarily one-to-one -- but it can be better than that -- one-to-one realtime.

Finally, Marc ends on the point that Social Media is not the Final Frontier of Marketing -- giving full credit to a post by Brian Solis of Futureworks. In Brian's post, he discusses some of the thoughts of Pierre Far, who had originally discussed this point in an interview on the Techipedia blog (phew!).

Brian succinctly states:

If anything Social Media, as it exists today, has simply created a more efficient platform which amplified and organized people’s voices as well as democratized content, and in doing so, collectively built a foundation for a new level influence between companies, traditional media, influencers, and people in general.

Social Media doesn’t necessarily replace traditional marketing. Everything is concentric. Everything should work together.

Brav-o! This view is very much in line with our view that Social Media is yet another tool in the overall marketing toolkit. If you integrate it into what you are doing today now, you will be well ahead of your competitors over the long-run. Why? Because despite all of the hoo-haa over Social Media, it is still not widely used or accepted by the many . . . and those few who see this and use it now will definitely have the upper hand.

The reason for this is that it is becoming increasingly apparent that consumers and businesses alike want to be involved in the conversation. It isn't just the younger generations -- it's all generations. There is a simple reason for this . . . people are sick of being marketed at. Businesses and consumers alike want to be involved in what messages are sent to them and the overall process of deciding what products and services to purchase.

While not the final frontier of marketing, social media is definitely the newest kid on the block -- and the channel that will separate companies from one another when integrated into the marketing strategy and executed really well.

Take a look at these posts -- both offer really compelling insights and will get you thinking about your own social media strategy. And, if you have any other ideas as to what social media is and isn't, shoot us a comment.

Two Thoughts on Generational Marketing

2008-06-04T08:30:00.000-07:00

It's so very important (and quite interesting, too) to understand how generational attributes need to be considered when marketers are developing campaigns. If your goal is to make sure that your message resonates with your target audience (and let's face it, that's a key goal for any direct marketing program), then you absolutely cannot ignore generational attributes.

I thought I would share two perspectives on two different generations.

The first article is from Precision Marketing: Marketing messages ‘irrelevant’ for over 50s. It discusses how so many marketers are missing the boat when it comes to targeting the mature market.

"The mature market is being neglected and misrepresented by marketers, with over 60 per cent of the over 50s believing that advertising aimed at them presents them as infirm or immobile."

Contrary to many common beliefs, the research also showed that online shopping is the preferred channel for Seniors.

So, if your market is an older one, you absolutely cannot ignore interactive and social marketing. You also need to remember that this group considers themselves vital and full of life--not infirm. I guess 50s are the new 30s!

And, then from the opposite side of the scale, this Q&A from USA Today provides some insight on how to market to Gen X and Gen Y'ers (more commonly known as Millenials). The title says it all: Avoid hard sell when marketing to younger generations.

If your market includes people born between 1965 and 1994 (14 to 43-year-olds), you need to understand that this is a cynical group that needs to be educated (they love blogs). You need to prove that you understand what you're doing and be authentic when you do it. Nothing can smell like hype or 'sales'.

"The essential thing then to understand about selling to the new generation of younger adults is that they are Web-savvy, blog-friendly, and, not only do they see through the spin, it turns them off. Your pitch to them has to take all into account."

Hopefully this insight into two huge generational groups will provide some insight as you develop offers, creative and messages.

Mobile Marketing: How Will it Grow?

2008-06-03T07:36:00.000-07:00

Over the past five years or so, there's been more and more discussion about integrating mobile marketing into the direct marketing mix. You can find almost equal opinions on either side of the equation. Some feel that marketing to wireless phones won't work because the content isn't quite there yet, and consumers will feel that it is too much of a hassle to integrate mobile into their lives. Others feel that, as marketers, you're definitely missing the boat if you aren't actively engaged in strategically placing mobile marketing as an integral channel in your multi-channel marketing plan.

DM News just posted an article with two very different viewpoints on this subject. Entitled "Should Cell Ads Cost more than Web Ads," they pit Roger Woods, SVP and GM of the Americas at Amobee Media Systems against Robert Arena, VP and Interactive Director at Carton Donofrio Partners. Both gentlemen bring up some very interesting points in this very topical debate.

Woods argument is that "when visual real estate is severely limited and highly desired, demand for it among media buyers is naturally very high. It's why mobile ad inventory will command a premium price." Woods also believes that wireless carriers will maintain a significant advantage for at least the short-term due to the fact that they are the ones that have virtually unlimited access to all of those wireless screens. Finally, he reminds us that "the fundamental elements of reach, precision and supply are aligned for the wireless carrier to charge a premium price in any scenario" -- no matter how mobile marketing continues to evolve.

On the other side of the equation, Arena argues that mobile marketing is far from commanding the premium pricing of traditional display advertising. He compares lower mobile advertising revenues (at $871 million) to higher internet advertising revenues (at $24 billion), even though more people have access to mobile phones than they do a computer and the internet. According to Arena, this is due to the fact that "metered pricing, slow networks and a frustrating user experience have dissuaded consumers from integrating mobile into their daily lives." In Arena's opinion, while a viable channel to keep our eyes on, mobile marketing still has a long way to go before it is adopted as a widely-used direct marketing channel.

So, here are two very different opinions on a direct marketing channel that we've been talking about for some time -- and is continuing to gain in importance. I'm thinking that mobile marketing will, in fact, command a premium price as the technology becomes more "consumer- friendly." There are many new, forward-thinking firms out there who are creating the technology to enable interactive media campaigns via the wireless instrument (take a look at CommerceTel's website). So, the technology is here . . . therefore, consumer-friendly is not that far off.

Consider the fact that the largest Generation alive today -- the Millenial Generation (those 8-22 year olds) absolutely depends upon their wireless phone, and you can start to believe that mobile marketing will continue to grow in importance as a marketing channel. This Generation embraces the wireless phone so much so that it has become almost an appendage to their bodies -- they literally depend on their phones to keep them connected. Millenials are now entering the workforce and will bring their ideas/needs to those companies that they work for. They may become (or perhaps have become) the springboard that will launch mobile marketing into the same stratosphere as internet advertising as they demand to have content delivered to them on their all-time favorite electronic device.

We'd love to hear your opinions as this debate rages on!

Case Study: Database Builds Loyalty for Casino

2008-06-02T08:26:00.000-07:00

Today's direct marketing case study comes to us from Equifax. Since we enjoy reading about how technology (in this case a marketing database) impacts overall performance, we thought we'd share. For those who are grappling with the decision as to whether to build your marketing database in-house, or use a service bureau, you should continue reading.

Client Profile
A leading gaming and entertainment company, operating riverboat and hotel casino complexes across the U.S.

Challenge
To increase customer loyalty and drive repeat visits to their casinos, the client targeted direct marketing programs to their existing customers. They were using their operational database and very basic tools to generate direct marketing programs. To enhance campaign effectiveness, they wanted to conduct more testing and better target their direct mail and e-mail campaigns, but did not have the infrastructure to address the challenge.

Solution
The client engaged Equifax to conduct a requirements and feasibility study. Their goal was to build an in-house database solution, versus a service provider solution. The feasibility study was a collaborative effort with the client's IT. Equifax built a comprehensive test database parallel to the client's current system--with the added challenge of a changing operations system.

Equifax delivered a database solution that exceeded the client's expectations. The project that began with a feasibility study evolved into a comprehensive service that provides a "single view" of the customer across several properties. The service includes daily updates of customer, transactional, demographic, hotel and promotion history data into an open relational database utilizing best-of-breed business intelligence and campaign management tools. The solution supports daily, trigger-based, multi-channel campaign executions, enabling more convenient, relevant offers to patrons. The client's solution has expanded to include data mining and analysis, using predictive analytics and modeling tools and techniques to enrich their direct and e-mail marketing strategies.

Results
Equifax delivered a powerful marketing database solution, on-time and on-budget. The solution provides direct marketing expertise and support comparable to a more costly, yet less effective in-house solution. In addition, the database features a Quality Control element that ensures the clients meets industry regulatory requirements. The flexible, robust infrastructure facilitates a more "enabling environment." As a result, the client is experiencing greater success in marketing across all segments of the business.

Average spend per customer increased 20%. More timely and better matched offers to patrons--with emphasis on event-triggered opportunities--has increased patron's visits and play, resulting in a more satisfied customer base and better ROI for the client.
Dramatically shortened timelines enable the client to deliver more frequent mailings to patrons. Direct mail campaigns that used to take two days per property to execute now take two to three days for all six properties.
Through increased efficiency, the client can quickly, aggressively pursue multiple marketing tactics simultaneously. In addition, the marketing team can "put good direct marketing strategies to work."
Improved, timely business reporting allows the client to apply key learning for the implementation of more effective marketing strategies.

Equifax has proven to be a valuable resource in this client's quest to optimize customer relationships. As a database provider, Equifax has helped the client learn more about their customers in order to increase their visits, build loyalty and, ultimately, boost revenue.

Favorite Weekly Links

2008-05-30T07:16:00.000-07:00

Can you believe that it's already Friday again? Dang -- I love these short weeks! Anyway, here are our favorite links this week. Hope you enjoy them.

I love this first post by the Servant of Chaos. Entitled "Seeing the Wonder in Technology," Gavin Heaton discusses how cool it is to be able to engage with the technology today and communicate real-time with folks across the globe. And it's all at our fingertips. It's very cool and as I pointed out in a comment, it hasn't been that long ago that none of this was possible. I remember when internet access was restricted at AT&T in the 90s because the leadership team thought people wouldn't work if they had access to the internet. Can you even imagine doing your job without it today? And that doesn't even take blogs, podcasts, instant message discussions and the like into consideration. Great post!

The next post we really liked was my 2 cents: Holding the bag? Author David Reich discusses the recent announcement by American Airlines about the additional cost of checking even one bag. Reich wonders if this announcement and the resulting consumer uproar makes for a great marketing opportunity for rival airlines -- or not (because they'll follow suit). I personally think the bigger issue is that, unfortunately, the airlines now treat us all badly -- it doesn't matter if you're a once-a-year flier or some super-executive-plutonium-platinum frequent flier status. Anymore, it's just not a good experience with the airlines. They tend to be surly and confrontational, as opposed to customer oriented. That's fallen by the wayside. I think this post will resonate with many!

As a post-script to this, however, I've got to give my friends at Southwest a shout out! They do, really try to treat their customers better. And, I think that they've separated themselves from the rest by keeping their customer focus -- and by doing things like writing a blog where customers can interact with them. If you haven't checked out their blog, definitely do -- it's a good one! By the way, the most recent post features a video from their CEO talking about the fact that "Fees don't fly at Southwest." See what I mean?

Can you think of all of the advertising you've seen lately on being green? Well, if you read our blog, you know we're environmentally friendly marketers and a big fan of Kermit the Frog. On a recent Melodies in Marketing post, blog author Mario Vellandi posts "10 Signs of Greenwashing" by Futerra Communications. It's a cute post that gives us both pictures and words of some of this over-the-top marketing that may be just that . . . over-the-top. Some products (take cigarettes for example) just can't be made to be green, no matter how much the manufacturer may try!

Enjoy these posts and a lovely weekend to all!

How to Get a Raise

2008-05-29T08:41:00.000-07:00

Let me start off by saying (just to be perfectly clear!)--today's post is not only for the direct marketing industry.

With that said, I think all of you direct marketers can benefit from this sage advice I found today on Laura Rowley's Money and Finance site on Yahoo. The article provides Seven Ways to Get a Raise in a Soft Economy.

Essentially the article acknowledges the soft economy we're facing today, but urges people not to let the economy stop them from seeking a pay raise.

"Employers will shed 45,000 jobs a month on average in the current quarter, forecasters predict, and unemployment will rise to 5.5 percent from 5.1 percent by the fourth quarter.

At the same time, companies are expected to hand out raises of 4 percent this year, according to a survey by the Washington-based Economic Research Institute."

Here are her tips to help you get that 4% raise (or even a bigger one!):

Mistake No. 1: Assuming you can't ask for a raise. In a nutshell--if you don't ask, you won't get one!

Mistake No. 2: Justifying your request for a raise. Don't make the raise contingent on something going on in your life (just had a baby; wife lost job; etc). Instead communicate the benefits that you've brought to your company. Talk about your successes as a reason why you deserve that raise.

Mistake No. 3: Asking at the wrong time. Don't ask for a raise right when you're back from a nice vacation. Instead ask right after you've done something really great for your company.

Mistake No. 4: Tooting your own horn too loudly. Instead of talking about how good you are, demonstrate it.

Mistake No. 5: Promoting your unconventional style. Instead, try to emulate the corporate culture you're working in. This will get you much further--your company will be more apt to want to keep you, AND give you that raise.

Mistake No. 6: Listening to what the company says instead of watching what it does. Pay attention to the type of actions the company rewards, not what they state are their values.

Mistake No. 7: Quitting when you don't get the raise you want. Now, understanding that your company doesn't value you enough to give you that raise might be a good reason to start looking. But, quit after you've landed the new job, not before.

As a closing note, yes, this economy might be tough, but we believe that direct marketers absolutely have the tools to thrive and to get those raises. After all, our work is based on measurable results. Be prepared to show, in writing with graphs and figures, exactly how your marketing efforts equated to new customers acquired, new sales made or profitable customers retained.

We direct marketers are lucky that a key component of our job (the measurement piece), the very essence of what we do every day is also that very thing that we can also use to justify our raises.

What Does Poor Data Quality Cost You?

2008-05-28T07:33:00.000-07:00

As you work hard to squeeze the most out of every direct marketing dollar, one of the most important ingredients -- and one that is often overlooked -- is data quality. And, as we market to our customer databases, it is so important that the data that is housed within it is accurate.

In a recent article in BtoBOnline, Bob Orf, President of Data Mentors describes how the cost of direct marketing with dirty data can wreak havoc on already stretched budgets. As Bob points out, "As one-to-one relationship marketing becomes more the norm, databases are expanding at exponential rates. In fact, corporate databases double in size roughly every six to nine months. These two factors alone should be sufficient stimulus for businesses to get their databases in order in a cost-effective manner. The average business database contains a staggering amount—15% to 40%—of bad data. That means roughly one in four pieces of marketing material mailed is worthless."

Yikes! That'll keep you up at night -- 25% of your direct mail is not getting to the intended recipient? I can imagine the C-Levels all over the country clutching their hearts over this statistic. In an economy that demands that every dollar be spent as intelligently as possible, you would think that this would be totally unacceptable at any company.

When you think about it, it isn't that difficult to clean up your customer database. Let's face it -- the widely available data hygiene tools are cheap and readily available in the marketplace. There just isn't a good reason anymore to have dirty data.

And, once you get your data assets cleaned up with these hygiene tools, it's easier and more cost effective than it used to be to keep your data managed effectively. Not only does this save you money, effective data management enables you to touch your customers efficiently. Once you've got this orchestrated, this will positively impact customer satisfaction as well.

The savings realized by effectively fixing your data quality issues can be staggering. Let's look at Orf's example:

Let’s assume a company’s 10 million-record database consists of 15% bad data. The company uses the database to conduct synchronized direct response mail and one-to-one relationship marketing campaigns. It touches the entire customer base quarterly. That’s an annual total of 40 million pieces of printed material at an average unit cost of approximately $1.05 each (labor, material, postage). Shaving 10 points off the bad data percentage would translate into a gross savings exceeding $4 million.

$4 million in savings will make anyone look like a hero in their organization. When you add in the positive impact to customer satisfaction and all of the time and resources saved by implementing a sound data quality strategy, you've hit a home-run!

Practical Social Marketing

2008-05-27T08:24:00.000-07:00

Just like all of you out there, I read lots of news, blogs and articles each and every day. Part of this curiosity is my need to keep up-to-date on what's going on in marketing, and part (quite honestly) is to ensure that we keep coming up with new info to share with readers of this blog.

So, when I come across information that I can take action on and use almost immediately, I get really happy. That's what happened this morning when I came across a super article on how B2B marketers can make use of social marketing. Be forewarned--this is not the usual advice on how corporations need to create a blog to initiate a dialog with their customers (although we believe that IS important). It also does not give the same advice to put up profiles on places like Facebook, just so your brand can have a presence there.

What it does provide is practical tactics centered around using social marketing for B2B marketers. The article, which essentially consists of an interview with Bianca Garcia, a media planner for Overdrive Interactive is titled: How a Social Media Campaign Fits into a B2B Media Plan.

Here are some of tips I found especially interesting:

Go beyond LinkedIn. Be on the look-out for industry-specific social networking sites, but don't ignore the sites for the masses such as Facebook, because many businesspeople are participating on a business level. (Check out this Direct Marketing Facebook group that we participate in actively.)
Ms Garcia advises us to "look at online campaigns holistically, meaning I don't just think of a social media campaign as establishing a mere presence in the social networks, but I always tie in banner ads, blog outreach, e-mail blasts, newsletter sponsorships, etc., into the media mix."
She reminds us not to forget about YouTube, as this is a fabulous opportunity to get your product info in front of interested viewers. "Some B2B companies might dismiss YouTube as simply a youth-oriented, amateur-video site, but it is far from that. YouTube has turned into such a powerful and relevant social media tool that anyone can leverage its reach and viral effectiveness. There are thousands of education, science and technology, news, and how-to videos about and produced by various B2B brands and companies."

All in all, a thought-provoking way to look at maximizing your investment (even if that investment is only time) in Social Marketing--specifically tailored to B2B marketers.

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