CLASS 11: Direct Marketing
Creating More Effective Direct Mail Content (5)
1. 7BBʼs - Good Uses of the 7 Building Blocks. 2. UMS - Universal Marketing Structure 3. FAB Table - Features, Benefits and Advantages 4. HCG - Headline Creation Guide. 5. MIS Codes - In the close of the UMS but worth repeating.
Facebook give you... (2)
1. A very large targeted audience that spend a lot time on FB 2. Ability to receive credible recommendations from friends, family, and other businesses
Boosting Response unmeasured methods (7) *****
1. Better targeting 2. Better quality list 3. Better content 4. Use the right list type 5. Personalize 6. Repetition 7. Multiple Response Channels
1. Brands can reach more customers 2. Drive more traffic to their site 3. Make additional sales
What is tested in direct marketing? (4)
1. Content - offer or headline, entire communication, envelope, color, enclosures 2. List or Media 3. Timing 4. Frequency
Direct Response Advertising
1. Content - use tools for creating direct mail communications ex. 7BB, UMS, FAB, HCG 2. Media - ads, billboards, tv, youtube, direct mail and email, apps 3. Timing - picked by the advertiser (when they sense you are in the area or products you order are on sale) or prospect. 4. Costs - also have CPMs but determined by the marketplace
CMTC
1. Content and Channel 2. Media or List 3. Timing 4. Cost
Why the Explosive Growth and Importance of Direct Marketing (7) ****
1. Cost less 2. Convenience and safety 3. Growth of the internet 4. Mobile and time shift technology 5. Busier people 6. Equalizer - ex. ppl with disabilities can buy just as easily as others 7. Anonymity of Buyer
Direct Marketing Channels or Methods (4)
1. Direct Mail - send promotions via traditional mail. You can make this two way by including a business reply card (BRC) 2. Telemarketing - Phone promotion (Inbound - toll free response) and outbound (follow-up phone calls). Two-way interaction, but could be one way with automated calling systems (which most people hate) 3. Direct Response Advertising - Ads that produce a direct buying action. One way, but could generate a response. 4. Internet - Email, websites, search (SEO and SEM), Weblogs, Podcasts, Social Networking and sharing, and Advergaming. Two way interactive, but could be one way in the case of ads or product placement online
Email: 1. Solo mailer equivalent 2. Self mailer equivalent 3. Headline equivalent 4. Direct Mail content 5. Avoiding junk and spam labels
1. Email with attachments or links 2. Email with content in body (HTML or other) 3. Subject line is the HL and critically important 4. Follows guidelines for creating better direct mail content, but with limited email graphic limitations 5. Better content, targeting, timing, and making sure targets can opt in and out
Value of Boosting Response (4)
1. Get the cost per response lower - lower costs of DM 2. Increases sales - you can use it to sell now and in the future 3. Adds to value of database - all on your list can refer business to you, and you can make more money when you rent or sell your list 4. Greater profit - sales go up , costs go down, and profits go up accordingly
Testing Methods
1. Grid Test- tests two variables at once 2. Measuring what happens 3. Measuring key variables 4. Measure lifetime value 5. Analyzing what happened and why and how to be more successful the next time
Direct Mail - Timing and Frequencies
1. H and W leads should be followed up per the "next step" 2. Customers, C-leads, and others for which there is no next step be contacted max of 6x per year (every other month) and min of 4x per year (every quarter). Objective is to be aware of moving buying window
Direct Marketing Sequence (9)
1. ID Target Audience - Use MIS to identify target prospects and best ways to reach them 2. Choose DM channels - Direct mail, telemarketing, direct response advertising, internet and mobile 3. Select or acquire media to reach your audience - this could be mail, email, or phone list or media subscribers, viewers, users 4. Create content that sells to fit the media selected - an offer is made via direct mail telemarketing, DR ads, or online vehicles 5. Choose timing and frequency - you need to insure that you contact prospects when their buying window is open 6. Run the content in the media selected - direct mail, telemarketing, direct response advertising or internet 7. Receive response that is generated - interested prospects responds by taking a buying action ultimately resulting in ordering directly via phone, mail, internet, or some other direct method 8. Fulfill order - the order or request is fulfilled by your company - at least one option should be within 48 hrs 9. Measure results - a MIS is used to measure the effectiveness of the Direct Mail campaign and to take corrective action
Web Design Process ****
1. Identify Target Audience. 2. Develop Web design philosophy (store, office, brochure, ...) 3. Create a Site Map. 4. Develop Home Page. 5. Design other pages template. 6. Create pages. 7. Optimize for SEO. 8. Test in popular browsers and for various computer screens. 9. Make changes.
Direct Mail - Media - Types of Mail Lists (3)
1. In house - Leads that you have generated via your marketing - usually best because those on list are you prospects whom you have met 2. Response - Those that you have bought via Direct Marketing methods - next best because they have bought sight unseen before and more likely to feel comfo doing it again 3. Compiled - Compiled from public data such as birth, death, and real estate records- last because they are compiled by public data.
Boosting Response Measured Methods (4)
1. Inbound Telemarketing (toll free #) = 50% boost in response 2. Outbound Telemarketing (warm call) = 300-700% boost in response 3. Personalized Gift (the target's name or initials on it or something that has special meaning to that prospect) = 7500-8000% boost in response 4. Response Compression (compress the time between different direct marketing channels when employing integrated DM) = 200% boost in response
Using Direct Marketing to Lower Personal Selling Costs (3)
1. Lead generation costs - direct marketing can generate leads and the better leads can be given to the sales people for face to face follow up 2. Follow up costs - much of the follow up can be by phone, email, and direct mail, especially with the C-leads 3. Closing Costs - Using direct methods to do much of the lead generation and follow up, sales people can focus on hot leads and closing sales
Integrating social media with all other marketing can....(3)
1. Make brand impressions 2. Create leads and referrals 3. Generate sales
Direct Mail Response Horizons
1. Most Mailer Types - 3 weeks and follow a bell shaped curve 2. Catalogs - 6 months with most in 3 weeks and a 6 month tail
Direct Marketing Association definition (3)
1. Sell sight unseen - There is no face to face interaction 2. Results are measurable - Sales and responses can be tied to the source that produced them 3. Uses a database - Targets are from a data base that has mailing or email address and phone numbers
Types of mailers (3)
1. Solo mailers 2. Self- mailers 3. Catalogs
Testing Guidelines (5)
1. Test big differences 2. One or two things at a time 3. Statistically significant #s 4. Test often 5. Budget 10-20% of entire campaign to testing
Web sites use the same tools in creating any promotion plus... (4)
1. Tools - use the UWS in addition to 7BB, UMS, HCG. Create apps that drive traffic to site. 2. Design Metaphor - store, office, brochure, new source, game, etc. 3. Home page - should have corporate ID tools in upper left corner, headline to make it clear why they should do business with you ,should not require scrolling horizontally and while vertical is OK, it is better if they do not have to scroll beyond one screen. 4. Google Golden Triangle - make sure what is most important is in the GGT area cause this is where most eyes look when on a website or search results page
Outbound Telemarketing (6)
1. Warm calls - follows up on a mailing or email. Cold call is first contact with prospect initiated over phone 2. Getting past the gatekeeper - treat them w/ respect rather than as a roadblock to plow to get to decision maker. Get his or her name and write it on lead card. Refer to it the next time you call and develop a relationship w/ gatekeeper 3. Notes of all contacts 4. MIS data - use call as opportunity to collect info about prospect,m company, and marketplace 5. Cross selling - uses an interactive contact as an opportunity to sell other products during the same contact 6. Customer service
Social Media Mobile (9) ****
1. apps 2. push notifications 3. product research 4. buying products 5. tracking products or status 6. discounts and coupons 7. fix problems/feedback 8. voting 9. mobile strategies
Email - Following is likely to decrease open rate (3)...
1. last chance or missing out 2. donation or charity (although helping increases open rates) 3. free or freebie increases open rates in some industries (restaurant, recruitment, beauty, entertainment, music and art) but decrease them in others such as medical, retail, and travel
Email - You can increase open rates by including the following in the subject line.... (6)
1. unique benefit focused headline 2. names (personalizing) 3. urgent or important 4. announcement or invitation 5. free shipping 6. thanking the recipient
BRIEF HISTORY: Direct Mail started in the US in _____________ when _________ distributed Poor Richard's Almanac by mail throughout the 13 colonies. It continued with the Montgomery Ward catalog in 1872 the Sears catalog in 1888
1733; Ben Franklin
Average response rate for direct mail and email is ___to ___%. Many methods can be employed what will boost response, but the _________of the boost is not easy to measure.
1; 2; amount
Direct Marketing produced $_________ in sales in 2012, or roughly __________% of US GDP according to the Direct Marketing Association.
2.05 trillion; 8.7
How do you avoid having your business ruined by direct competitors? (as has happened to many travel agents)
Add value and communicate your added value. Provide your customers with something important that is not available through direct competitors.
Email is ________, __________. and if executed properly can be a very powerful direct marketing tool. If misused it can damage your __________.
Convenient; inexpensive; corporate image
Catalogs
Equivalent of a "store" in booklet form, from which sizable numbers of products are sold. Catalog variations: - mini catalog - card decks - packets - tabloids - and other catalog type mailers that are not in an envelope
Gives the ability to communicate in powerful headlines (users limited to 140 characters) that reach influential networks of ppl. Less web traffic than FB and other social media but can be easily linked to other social media sites
Good for business to business market. The HR departments of businesses use it to find candidates, Businesses can put profiles of their products and white papers on the site, and use it to promote activities
What is the downside of direct marketing? (6)
In general, direct channels have low response rates. 1. Direct mail P: Junk mail C: Better content and opt in 2. Email P: Spam C: Spam block, better content, opt in 3. Telemarketing P: Unwanted interruption C: Do not call list, better content, warm call 4. Anxiety buying site unseen C: Liberal return policies 5. Credit card security P: ID theft C: Secured and insured 6. Problem resolution C: Make easy to contact to resolve problems
Solo mailers
Mailers in an envelope. Advantage is privacy, ability to piggy back other marketing materials, and they are less likely to be considered junk mail. They can alos be personalized and seem more professional. Downside is you have to get people to open the envelope Electronic equivalent = email w/ attachments
Test new variables against the control
New approaches are constantly tested against the control version, and the winner becomes the new control
Self-mailers
Not in an envelope, and includes brochures, post cards and other short form communications with a mailing label. Works better for ppl who read their mail standing up or need to see the headline of the mailer before deciding to keep/throw away. Electronic equivalent = regular emails
Direct Mail - Toll free response mechanisms
Provide multiple toll free response mechanisms on all mailers ex. toll free phone number and email address
Direct Mail - Costs
The most popular cost method is CPM or the cost of reaching 1000 prospects. Most mailing lists are sold or rented based on CPM.
Direct Mail - How do they catch illegal use?
They seed lists with dummy names that go to the list owner providing evidence for them to sue and win.
Inbound Telemarketing
Toll-free response mechanism on all outbound marketing communications with a code to measure success.
Direct Marketing Definition
Using a non-face-to-face direct channel whereby the buyer cannot touch the product or shake hands with the seller
Direct Mail - How can your list make money?
You can rent or sell it to those that want to reach your audience. You can do this through a list broker.
Advergaming is a combination of _________ and __________ to educate, engage and sell prospects as they have fun.
advertising; gaming
You want to create a "sticky" Web site that will ________ visitors, _________ them about your company and products, and get them to _________________.
engage;educate;return again and again
Upselling is not cross selling. Upselling is...
getting the prospect to buy more expensive and profitable items than they originally wanted to purchase.
The amount of Churn (definition of churn is...) in a list or databse is based on its ______ and ________. Churn averages ____% per year or ______% per month.
inaccuracy of data; age; maintenance; 18; 1.5
SEO is a .... Web engines can be search engine-optimized by (3):
organic or natural search engine 1. embedded them with key words 2. links from important sites 3. increasing the size of your digital footprint (connections from social media and important sites, meta tags, and in many other ways)
SEM is a....
paid search Buying ads or key words on search engines
Statistical significance- You would use _____________ to determine the test sample size to give a certain ____________. In many cases a test cell of __________ gives a statistically significant sample with a _____% level of confidence.
statistical tables; confidence; 5000; 95
Direct Mail - Legally owning names on lists - You legally own the info for _________ .
those that respond
In his book Future Shock, Alvin Toffler said that....
with every convenience comes an equal and opposite inconvenience.
Youtube
youtube commercials cost less than paying high TV ad rates. Users can create and share hauling videos.
