CQ - Use Direct Marketing To Grow Your Business

Using Direct Marketing to grow your business

Topics • Changes in marketing and advertising • Broadcast, Search and Direct Marketing • Tools of Direct Marketing • Successful Direct Marketing case studies

Marketing and Advertising 80’s

Marketing and Advertising 2009

Broadcasting 80’s Broadcast • TV • Radio • Cinema • Newspapers • Billboards/Signage • Print (offset, large volume, static) – Communication guaranteed – Loud and consistent message = sales – One way communication – Spray and hope advertising – No measurable responses

Broadcasting Now Broadcast • TV - Digital Terrestrial, Satellite, IP (online, viral) • Radio – Analogue, Digital, Online • Websites • Newspapers – Online • Social Media – Networks: – Blogging: – Newsfeeds: – IP Media:

Broadcasting Now Broadcast – Online/Social Media allows for Two way communication – Searchable – Measurable responses – Communication isn’t guaranteed (Many channels - Fragmented) • Are they subscribed to your channels? • Are they “tuned” into your broadcast? – Media costs down, but time and labour costs up

Broadcasting Now Broadcast - Online “The problem with online is that many of the [media] costs are so much lower that it’s dragging everything down. But for agencies, the irony is that their costs are so much higher online than they were on television. That eats into their profit margins.” - Robert Shaw, a professor at London’s Cass Business School. “Because the internet audience is more fragmented, every pound spent on advertising space online costs almost three times more, in terms of time and labour, than it would if you spent it on traditional media.” - Quentin George, chief digital officer at Interpublic’s Mediabrands. “The traditional time-based billing model is tough to uphold when developing online campaigns, says Rich Silverstein, co-founder of Goodby, Silverstein & Partners, an agency owned by Omnicom, the global marketing giant. “The internet is so deep it’s like drilling for oil,” he says. “So far, I don’t think we’ve really charged for all the time we’ve put into it.”

How do you reach people who aren’t tuned into you? Search – “They find you” and Direct Marketing – “You find them”

Search 80’s Search • Yellow Pages • Directory Listings • Trade Industry Publications • Trade Industry Events – They find you – Positioning – Some measurable responses – Very easy type of marketing

Search Now Search • Search Engine Optimisation • Digital Asset Optimization – Global search now available – Global Positioning/Ranking – Full measurable responses – Not as easy, constant monitoring

Direct Marketing 80’s Direct Marketing • Telemarketing • Sales Calls • Face to face • Relationship Management • Direct Mail • Direct Gifts – You find them! – You choose your clients. – You understand their needs. – Seen as too hard – Seen as unglamorous

Direct Marketing 80’s Direct Marketing • Telemarketing • Sales Calls • Face to face • Relationship Management • Direct Mail • Direct Gifts DM is seen by many to be either dead or is “advertising’s ugly – You find them! step sister”. – You choose your clients. – You understand their needs. – Seen as too hard – Seen as unglamorous

Direct Marketing Now Direct Marketing • Database driven • Personalisation Software • Digital Print • Email • PURLS • Barcodes • Mobile Phone Advertising – TXT/SMS, QR Codes, MMS • Web and Mobile Phone Applications “In many people’s minds Direct marketing is under appreciated and under valued in our current world which focuses on all things social (networking, media). That's because successful DM is hard work and doesn't have the glamour of Twitter, blogs, wikis, YouTube etc. Today's hiring managers are caught up in shiny objects that distract management from pursuing actions that have a long history of generating significant amounts of profitable revenue.” - Pat McGraw, McGraw Marketing

Direct Marketing Now Direct Marketing – Creativity in real world applications – Allows for cross-media campaigns – Strategic – a well designed plan of action – One good strategy – Run many times – Very good return on investment – Set yourselves apart from competition – Fully measurable responses – Reaches where broadcasting can’t

The Common Factor in 2009? BROADCASTING (Online) DIRECT MARKETING SEARCH

The Common Factor in 2009? BROADCASTING (Online) DIRECT MARKETING SEARCH Databases

Tools of Direct Marketing • Database – Segmented Marketing • Geographic – region, country, climate, area density • Demographic – age, gender, ethnicity, language, socioeconomic, education • Psychographic – personality, lifestyle, value, attitude • Behavioural – purchasing history, loyalty George S. Day (Professor of Marketing at the Wharton School of Business, Pennsylvania, USA) describes two models of segmentation • the top-down approach: You start with the total population and divide it into segments. • the bottom-up approach: You start with a single customer and build on that profile. “Create a list of people you want to do business with.”

Tools of Direct Marketing • Personalisation Software – XMPie • Image and Graphic Personalization • Data-Driven Charts & Graphs

Tools of Direct Marketing • Digital Print • Short run • Fast turn around • Variable • Email • PURLS

Tools of Direct Marketing • Barcodes and QR Codes

Tools of Direct Marketing • Mobile Phone – TXT/SMS Short Codes

Tools of Direct Marketing • Mobile Phone - MMS

Case Studies • Example of a variable data printed retail card Wolverine

Case Studies • Agricultural Nufarm Limited – NuFarm Limited sells its products through distributors – Promote two products to the North American market – Raise company and product brand awareness • Personalised, three dimensional mail to 1000 distributors •One thousand distributors received a box •Labelled “We’ve got your back mate” •a back scratcher •PURL to a landing page

Case Studies • Agricultural Nufarm Limited • Personalised postcard to prospective end users •More than 9,000 current and prospective end users received a postcard that used the same imagery and slogan •PURL to a landing page

Case Studies • Agricultural Nufarm Limited • Offers used to drive people to the landing page – a chance to win a prize valued at $2,500 – a chance to win an instant prize of merchandise worth $25 to $500 – Once they visited the personalized URL, they were notified if they were an instant prize winner or entered into the Grand Prize drawing for the $2,500-valued prize • 46% response rate out of the 1,000 boxes sent to distributors • 6.7% response rate out of 9,000+ cards • 1,162 unique visits to personalized URLs • 1,078 of those 1,162 site visitors (93%) completed all pages of the • personalized URL

Case Studies • Retail - loyalty QUALITY STORES THANKQ PROMOTION • Increase sales in existing customer base for promoted merchandise. • Drive sales into other categories through cross-shopping offers. • Mother’s Day promotional flyer was sent to male customers • Newsletter contained promotional offers selected based on the customer’s purchase history • Promoted merchandise had a 51% lift in sales per name mailed. • 18% incremental lift in average dollars spent per customer.

Case Studies • Retail - loyalty Sainsbury's Personalised Birthday Greeting • Improve shoppers relationship with store • Provide a free gift in keeping with buying habits • Personalise images as well as copy • Increased redemption rate to more than 50%, which is 50% higher than previous methods had generated

Case Studies • Retail - loyalty Shoe Carnival • Connect with customers who had not visited a Shoe Carnival store in sixty days or more • Offer inactive customers an incentive to shop within a fixed period of time • Response rate of more than 26% •Net sales (after discounts) of more than $200,000

Case Studies • Retail - loyalty Specialty Retailers • Retain customers after they move to new locations • Communicate with the customer within the first 30 to 60 days in his or her new location • Coupon redemption rates as high as 42% •Repeat foot traffic in stores from new movers after the initial coupon redemption

Case Studies • Online Retail ebay – Personalised direct mail to eBay’s top clients – PURL address provided – PURL launched a web app that built a personalised page – Increased auction sales www.ebayfaves.com/mpanaggio

Footnotes • Direct Marketing with VDP doesn’t replace the need for good copywriting. In many cases it requires more effective copy. • People always buy for personal, selfish reasons. • Copy that speaks to them about what matters to them. • Always offer incentives for the clients to make the next step on the direct marketing path. • Most importantly – test and measure, test and measure ...

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CQ - Use Direct Marketing To Grow Your Business

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