Why Direct Marketing is Your Friend


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In this presentation for the Colorado Springs Chamber of Commerce "Chamber University" series, Barry McCann explains three reasons why direct marketing rules: 1) you can target customers; 2) you can measure results; and 3) you can test like a mad scientist.

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  • Outcomes: for those who don’t use direct marketing, to give you three advantages of doing so; for those who already market directly, some tips to consider.
  • Direct marketing encompasses many forms, but all these have a few essential elements: targeting the appropriate customers, a high degree of measurability and the opportunity to test many variations.
  • Direct marketing helps get to the customers you really want.
  • acquisition versus retention cost; if it barks, don’t spend money on it!
  • Acquisitions costs include creativeprintingmailing/distributionaddress correctionofferSEM click rate
  • Nobody wants the dreaded lawsuit letter.
  • Typically printed with the address info – last before it mails.Variable printing lets you print the piece, address and source codes at the same time.Source codes are for e-mails and Web referrals, too! They’re just more invisible.
  • Measures are the same as above.
  • Why Direct Marketing is Your Friend

    1. 1. Why Direct Marketing Is Your Friend<br />Barry McCannNew Ideas & Initiatives Director<br />
    2. 2. agenda<br />about me & PaperDirect<br />about you<br />advantages you have with direct marketing<br />#1: you can target the right customer!<br />#2: you can measure results!<br />#3: you can test like a scientist!<br />
    3. 3. about me<br />New Ideas & Initiatives Director at PaperDirect<br />past: Everglades Direct (g.Neil), Alamo Rent a Car & First Marketing Company<br />experience: Business Development, Brand Strategy, Customer Innovation, Product/Software Management &Development, Marketing, Customer Communications, Digital & Litho Printing, Internal Startups, Partnerships<br />education: Psychology & English Literature (ha!)<br />lived in Ohio, Pennsylvania, Texas, Florida & Colorado (3.5 years)<br />
    4. 4. about PaperDirect<br />help small businesses stand out from the crowd – look bigger and more professional without spending a lot<br />business identity<br />themed events<br />recognition<br />designed papers<br />through your printer or copier<br />custom-printed & delivered to you<br />direct marketing experts<br />millions of catalogs annually<br />60% of sales through our Web site<br />huge organic search presence<br />
    5. 5. about you<br />business size<br />1-10 employees<br />11-20 employees<br />21-50 employees<br />50+ employees<br />role<br />marketing<br />general manager<br />president/owner<br />
    6. 6. “direct marketing”<br />
    7. 7. advantage #1<br />you can target the right customer!<br />
    8. 8. the funnel<br />animals<br />vertebrates<br />mammals<br />mammals that lay eggs<br />
    9. 9. evolution of targeting<br />1970s 1980s 1990s 2000s<br />age<br />income<br />location<br />gender<br />ethnicity<br />occupation<br />firmographics<br />lifestyles<br />interests<br />activities <br />opinions<br />beliefs<br />motives<br />uses of products<br />purchase behavior<br />search terms<br />web site clicks<br />keywords<br />Adapted from: Barber, Fredrick and ArikKillion. Directive Corporation/Meredith Integrated Marketing. “Behaviorgraphics: A new approach to online and offline analytics.” DMA 09 Conference & Exhibition. <br />
    10. 10. fact<br />there are many customers you don’t want.<br />
    11. 11. key measures<br />acquisition cost<br />retention cost<br />reactivation cost<br />average order value (AOV)<br />lifetime value (LTV)<br />
    12. 12. tips for targeting<br />start with the customers you already have<br />who are they?<br />where do they live?<br />what product/service do they buy first?<br />how often do they buy / when did they buy last?<br />how much do they spend?<br />cast the net wide, then narrow<br />compiled lists versus response lists<br />remember to scrub your lists!<br />
    13. 13. advantage #2<br />You can measure results!<br />
    14. 14. source codes!<br />Ah ha! The secret code! <br />
    15. 15. what’s a source to do?<br />connects circulation to purchase<br />allows segmentation<br />customer type<br />buying behavior<br />marketing offer<br />creative<br />channel<br />price<br />
    16. 16. key measures<br />response rate<br />contribution<br />
    17. 17. tips for source codes<br />require a source code<br />make them easy to use<br />combine them with account/customer numbers<br /> make them invisible in Internet/mobile marketing<br />
    18. 18. advantage #3<br />you can test like a mad scientist!<br />
    19. 19. you can test like a scientist!<br />try stuff!<br />different offers<br />different creative design<br />different customer segments<br />
    20. 20. tips for testing<br />think like a statistician!<br />keep it random<br />maintain large enough segments to read results<br />test only one variable at a time<br />include a control group<br />test, then test again (and again) to establish reliability<br />beware of conclusions based on slight differences<br />
    21. 21. advantage #4<br />You can win arguments!<br />
    22. 22. other resources / tools<br />