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.

1. Why Direct Marketing Is Your Friend Barry McCannNew Ideas & Initiatives Director

2. agenda about me & PaperDirect about you advantages you have with direct marketing #1: you can target the right customer! #2: you can measure results! #3: you can test like a scientist!

3. about me New Ideas & Initiatives Director at PaperDirect past: Everglades Direct (g.Neil), Alamo Rent a Car & First Marketing Company experience: Business Development, Brand Strategy, Customer Innovation, Product/Software Management &Development, Marketing, Customer Communications, Digital & Litho Printing, Internal Startups, Partnerships education: Psychology & English Literature (ha!) lived in Ohio, Pennsylvania, Texas, Florida & Colorado (3.5 years)

4. about PaperDirect help small businesses stand out from the crowd – look bigger and more professional without spending a lot business identity themed events recognition designed papers through your printer or copier custom-printed & delivered to you direct marketing experts millions of catalogs annually 60% of sales through our Web site huge organic search presence

5. about you business size 1-10 employees 11-20 employees 21-50 employees 50+ employees role marketing general manager president/owner

6. “direct marketing”

7. advantage #1 you can target the right customer!

8. the funnel animals vertebrates mammals mammals that lay eggs

9. evolution of targeting 1970s 1980s 1990s 2000s age income location gender ethnicity occupation firmographics lifestyles interests activities opinions beliefs motives uses of products purchase behavior search terms web site clicks keywords Adapted from: Barber, Fredrick and ArikKillion. Directive Corporation/Meredith Integrated Marketing. “Behaviorgraphics: A new approach to online and offline analytics.” DMA 09 Conference & Exhibition.

10. fact there are many customers you don’t want.

11. key measures acquisition cost retention cost reactivation cost average order value (AOV) lifetime value (LTV)

12. tips for targeting start with the customers you already have who are they? where do they live? what product/service do they buy first? how often do they buy / when did they buy last? how much do they spend? cast the net wide, then narrow compiled lists versus response lists remember to scrub your lists!

13. advantage #2 You can measure results!

14. source codes! Ah ha! The secret code!

15. what’s a source to do? connects circulation to purchase allows segmentation customer type buying behavior marketing offer creative channel price

16. key measures response rate contribution

17. tips for source codes require a source code make them easy to use combine them with account/customer numbers make them invisible in Internet/mobile marketing

18. advantage #3 you can test like a mad scientist!

19. you can test like a scientist! try stuff! different offers different creative design different customer segments

20. tips for testing think like a statistician! keep it random maintain large enough segments to read results test only one variable at a time include a control group test, then test again (and again) to establish reliability beware of conclusions based on slight differences

21. advantage #4 You can win arguments!

22. other resources / tools