How to use permission marketing


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A fantastic Special Action Report on how to use permission margeting - Enjoy!

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How to use permission marketing

  1. 1. SPECIAL How To Use Permission ACTION REPORT Marketing to Create More New Clients Than Ever Before There is a new approach to marketing that you can use successfully in your business.A complimentary report Its called “permission marketing”, or “co-operation marketing”. Potentially, it can provided by an create more new prospects and more new customers than any other marketing system independent BBG… known… particularly when it is used in conjunction with the Internet as a web marketing strategy.Business Development Specialist This new marketing approach can be used in your business to build a bigger client/customer base than you’ve dreamed possible. Our purpose:To provide practical In the past, no matter what a business sold – goods or services – the traditionalbusiness information approach to marketing has been to interrupt (hopefully) well-targeted market that works… segments by way of an ad - a space ad, a TV or radio ad, or a salesletter ad… an interruption ad that that came at you out of the blue with a message you weren’t Guaranteed! expecting and were not really that keen to see or hear.In particular how to: This form of marketing has been called “interruption marketing” by Seth Godin, the Increase Sales guru of “permission marketing”. Reduce Costs Improve Productivity In his book Permission Marketing, Godin says: Better Business The basic idea of this form of marketing is very simple: Each of us is born Group Ltd with only a certain amount of time on this earth, and figuring out how to use itServing Australian and wisely is one of life’s primary activities. ‘Paying attention’ to something –New Zealand Business. anything – is, in fact, a conscious act requiring a conscious effort. BBG Australia So, one way to sell a consumer something in the future is simply to get his or her U5, 51 Perry Street permission in advance. You do this by engaging the consumer in a dialogue – an Bundaberg, Qld 4670 interactive relationship, with both you and the customer participating. Phone: 1300 711 743Phone: +61 412 667 559 Rather than simply interrupting a television show with a commercial, or barging into Fax : +617 3036 6174 a consumer’s life with an unannounced phone call or letter, tomorrow’s marketer will Email: first try to gain the consumer’s consent to participate in the selling BBG New Zealand Perhaps the consumer will give his permission, because he or she is volunteering to learn more about a particular product or class of products. Or, perhaps you’ll 1329 Akatarawa Road actually offer some type of payment or benefit in return for the consumer’s Upper Hutt 5372. permission. New Zealand Phone: +64 4 5266880 OK! There you have it in a nutshell. The easiest way to understand this is to Fax: +64 4 5264024 remember back to when you were courting or being courted. Think how you sought Email: (or gave) more and more permission as your relationship developed! And so it with building a relationship with a new prospect who has given you permission to Presented By: contact him/her. You first get permission to send some promotional material along with some material that will benefit him/her. Then you get permission to send him/her e-mail promotional information, and other information of interest. Page 1 of 6 Copyright © Fred Steensma
  2. 2. How To Use Permission MarketingTo Create More New Customers Than Ever BeforeYou can do this by way of an ezine (electronic newsletter). And so on. As the relationship develops, itbecomes more intimate, with maybe exchanges of e-mails of a more personal or problem-solving naturethat help him/her in his/her business activities, etc.Why Permission Marketing?Basically, the mass-production market has topped out. There are just too many high-quality goods andservices - all madly competing for the consumers’ dollars. Consumers are exhausted. It has beenestimated that the average consumer sees more than 3,500 marketing messages each and every single day.That’s more than one million marketing messages a year. And don’t overlook the fact that one simple tripto the supermarket can expose you to up to 10,000 marketing messages!Consumers are exhausted. In most cases they are already happy with the brands they use to wantto worry about considering switching to another brand. They are too tired of advertising messagesto be bothered giving them enough time and attention to make a considered decision about what todo about a new product or new offer. Consumers are sick and tired of the constant demands ontheir attention.But… marketers want to get their messages in front of you. They must get their messages in frontof you, just to survive… the only problem is do you, as a consumer, really want more marketingmessages?To this end, it is essential that we move from mass marketing to interactive marketing. And it is possibleto do this now, with the new cost-efficient technologies available. Now we can actually take a step backand ask for a customer’s permission to sell him/her things… to get him/her actually to look forward to,and to pay attention to, our selling messages.You and I can now ask a consumer directly if s/he would like more information… and then deliverit. (Incredibly cheaply by e-mail).Yes, you and I can now reward consumers for receiving and acknowledging our marketing messages ifwe ensure that that consumers own interests are being served, by giving them the chance of learningabout a new product or service that we are eventually hoping to sell to them!Five Levels Of PermissionSeth Godin makes much of an ascending order of levels of permission. (Revisit our courtship model!)And, in fact, any of us who have been in business for some time would realise this. As trust levels growbetween us and our longer-term customers, the permission levels do, in fact, escalate.For example, if I own a book shop and have had a customer for a number of years who regularly buysbooks on, say, the subject of the pyramids, I would ask that person if I could have his/her permission toput aside books on this subject for his/her inspection as they become available. I would most likely begiven a “Yes, please do that… thank you.”Just so we can benefit from using increasing levels of permission, Godin lists the following five levels ofpermission in order of importance: Intravenous (and purchase-on-approval model) Points (liability-and-chance model) Personal relationships Brand trust SituationPage 2 of 6 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email:
  3. 3. How To Use Permission MarketingTo Create More New Customers Than Ever BeforeThe highest level of permission refers to situations where a customer has given his supplier indefinitepermission to keep supplying him with something. For example, the business that supplies refills fordrinking water dispensers in homes and offices just keeps that water coming and billing you for it as itdelivers it.It is interesting to note that Godin says the idea of automatic replenishment can be extended in more waysas technology makes it easier to execute these systems. Virtually every product, therefore, can be sold bysubscription! (Can you apply this principle in your business?)The next level of permission is points. Points are a formalised, scalable approach to attracting andkeeping a prospect’s attention. Remember the use of stamps to build loyalty. Well, this is an example ofthis level of permission. Frequent-flyer points are the most common technique used at this level ofpermission today. And this concept can be used across many different businesses. However, the cost ofeach point to you should be as near to zero as possible, but be perceived as having a high value to yourcustomers.The third level of permission is personal relationships. Using the relationship you have with an individualis an extremely effective way to temporarily refocus his/her attention or modify his/her behaviour.It is essential for a business to recognise, and use, the power of the permission that exists in developingpersonal relationships. The trust that develops here is what is important. Remember that personalpermission is the single most powerful lever that you can have for making major shifts in a consumer’sbehaviour. Plus, it is the single easiest way to move someone to an intravenous level of permission.Much lower down the permission list is brand trust. It is dramatically overrated. And, by the way, brandtrust is extraordinarily expensive these days to create. However, brand trust does lead to brandextensions. When the new product from a trusted brand is good, that can lead to an enhancement of thepermission. But a brand extension that fails can do significant harm to brand trust. Once the marketerabuses the permission granted by the consumer, the consumer is in no mood to be abused again.The lowest level of permission is situational permission. Usually preceded by the question, “May I helpyou?” When a consumer calls a toll-free number for help s/he has given situational permission. Whenyou stop to ask for directions, or when you ask a store clerk for advice on a gift, or when you buy justabout anything from anyone, you’ve given situational permission.It is worthwhile taking the time to look closely at just what levels of permission are you being granted byyour customers. And then you need to look at how you can protect those levels of permission, and howyou can actually seek increasing levels of permission from your customers.Enter The InternetThe Internet has been described as the biggest direct marketing mail machine ever invented. And it is thisnew technology - with its killer application, e-mail, inked to faxes, phones and computers - that has reallymade…Permission marketing possible … and imperativeYou see, what direct mail marketers have always done (at great printing and mail costs) can now be donefor next to nothing by using the web and e-mail. What they have done is to build up one-on-onerelationships based on an original granting of permission to do so by their customers. And it is significantthat Seth Godin is the first-ever marketing guru whose whole marketing experience has been almosttotally on the Internet. (He is currently Vice-President for Marketing at Yahoo.)Page 3 of 6 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email:
  4. 4. How To Use Permission MarketingTo Create More New Customers Than Ever BeforeSo, the classic permission marketing technique, as developed for the Internet, consists of having prospectsvisit your web site. And then, while visiting your site, voluntarily requesting that they go on your e-maildata base. They do this to receive both free beneficial information as well as marketing information fromyou until such time as they ask to be taken off your e-mail list. Booksellers is probablythe best-known permission marketer in the world at this time. And they have used precisely thistechnique. You can use this same technique to market by your own web site. But how can you usepermission marketing outside of the web?Using Permission Marketing In Your BusinessYou really do need a computer capable of handling a database to start using permission marketingsuccessfully. But that’s about all.Let’s look at some examples:A gardening supplies and nursery business:Say you own a gardening supplies and nursery business. The first level of permission you could ask for ispermission to include customers on your mailing list. You could, of course, run some form of“interruption” ads – space ads in your local paper, or radio commercials that offer prospects a freeplanting guide or some such if they contact you and give you their addresses. Or, you could useinterruption marketing to promote a “field day” at your nursery at which you demonstrate a wide range ofnew plants, fertilisers, cultivators, etc. and then ask attendees for their permission to go on your mailinglist.The second level of permission you could seek might be asking your customers for details of particularplants they want, plus their e-mail address/phone number so you can notify them quickly when stocks ofparticular plants that they are particularly interested in getting become available. The third level ofpermission might be to ask them if you can to hold details of their credit cards, and bill themautomatically for particular products, such as fertilisers, on a monthly or three-monthly basis, as you havethem delivered in a prearranged quantity.A restaurant:Permission marketing can be used very successfully in the restaurant business. As more and morecustomers have access to e-mail (either at work or at home), it would be well worthwhile a restaurateurcollecting both phone and e-mail details from all of his/her local customers. It would also be worthwhilecollecting addresses at the same time. Permission could be sought to get these details so that customerscould be contacted from time to time about special offers, sent recipes occasionally, informed of specialevents such as an Asian Food night, family discount dine-out offer, or an Enjoy A Meal From The 50snight, etc.If your customers like and enjoy your restaurant, why not give them reasons for coming more often? Youmight even set up a “frequent-diners out” club, like a “frequent flyers” club, with benefits such as pointsfor meals bought adding up toward a bottle of French Champagne, or a free dinner, or some such. But, ofcourse, you have to get your customer’s permission to put them into such a program. Once in theprogram, they can be contacted with updates as to how many points they have toward their prize, etc.And with this comes more special offers to “club” members!A service station:Page 4 of 6 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email:
  5. 5. How To Use Permission MarketingTo Create More New Customers Than Ever BeforeYou may wonder how even a humble service station could use permission marketing. If you owned one,you could run interruption ads to ask people in your area if they wanted to be told when there wasdiscount “services” or discount mechanical work available.One local garage owner on Queenslands Gold Coast is already doing this. He asks clients if he can havetheir phone and e-mail details, and when work volume is down he e-mails or phones customers offeringthem 10% off the normal cost of a service or mechanical work for a limited time period. In this way hemanages to maintain the volume of work he needs to keep his four mechanics busy.A local insurance agency:Once again, this business asks permission to e-mail or mail out a regular newsletter on aspects ofinsurance of interest to its potential market. A relationship is built up through these contacts. Prospectsare specifically told that they can ask individual questions or have their own existing insurance coverreviewed free of charge. Recommendations are then made to them on the basis of this review. Andbusiness is generated. Referrals are sought and permission is obtained from these referrals wherepossible, to be put on the business’e-mailing or mailing list. And so it goes on.The basis of permission marketing is an offer made to a consumer to volunteer to be marketed to. Bytalking only to volunteers, permission marketing guarantees that consumers pay more attention to themarketing message. It allows marketers to tell their story calmly and succinctly without fear of beinginterrupted by competitors or interruption marketers. This form of marketing serves both you and yourprospects and customers, because it is a two-way exchange based on increasing mutual trust. As incourtship!Permission marketing, claims Seth Godin, encourages consumers to participate in a long-term,interactive marketing campaign in which they are rewarded in some way for paying attention toincreasingly relevant messages.Imagine your marketing message being read by 70% of the prospects you send it to. (Not 5% or even1%.) Then imagine that more than 35% respond. This is what you can expect to happen when you (i)interact with your prospects one at a time, (ii) use individual messages and, (iii) only exchange these withtheir permission over a period of time.Permission marketing is anticipated, personal and relevant Anticipated – people look forward to hearing from you. Personal – the messages are directly related to the individual. Relevant – the marketing is about something the prospect is interested in.Your Permission Marketing WorkshopTo help you see how you can introduce this form of marketing into your business here is a list ofquestions to help you focus on just how it can work for you.Offering A Benefit To Prospects Who Volunteer To Be Marketed To What benefit/s (information/service?) can I provide to get prospects permission to allow me to market to them? What are the main areas of interest (information) relevant to my prospects? Do I have this information now. If not, where can I get it? How will I provide my prospects with this information - by e-mail, by letter, by phone, by free periodical newsletter?Page 5 of 6 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email:
  6. 6. How To Use Permission MarketingTo Create More New Customers Than Ever Before What training/selling materials can I provide with this that will eventually lead to these prospects becoming customers and purchasing my goods and/or services.Getting permission How am I going to get permission? Will I be seeking to get permission from existing customers or from prospects? (From both?) Will these permissions be the same or different? What different levels of permission can I seek as the relationship grows? What can I do to ensure that I build a strong element of trust into the relationship? What do I need to teach my permission granters so that I will lead them to becoming committed, ongoing customers? How can I delight them, or reward them, throughout the process for granting me permission to market to them? How can I reinforce the incentive/s I have given to guarantee that my prospect maintains the permission? What even deeper permission can I get?How can I use these permissions over time to change the consumers behaviour so that I can increase myprofits?Page 6 of 6 Better Business Group Ltd Copyright © Fred Steensma Australia- U5, Perry St, Bundaberg, Qld 4670 - +61 412-667 559 or 1300 711 743– Email: New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: