deliver magazine volume 6 issue 3 july 2010

8/9/2019 Deliver Magazine Volume 6 Issue 3 July 2010

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This material was compiled from jamsessions across the country in 2010that brought together marketers fromsmall, medium and large business,for the rst time in Deliverhistory, togroove to the wonder of direct mail.Their talents have wowed consumersfor years, and continue to guideconsumers as they cross over to aricher, more rewarding life.

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deliverables

Source:ConstantContact,2010 U.S.SmallBusiness AttitudinalSurvey

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r v e m r e a l e

Qr codes un dec mal nomole maken

Youve probably seen QR (quick response) codes

in magazines and on billboards. But did you

know they could add interactivity to direct mail?

When a person snaps a picture of these two-

dimensional bar codes using a smartphone

equipped with camera and reader software

the codes spring into action, perhaps redirectingthe browser to a personalized landing page or

showing a phone number or message.

Te rapid penetration of mobile phones in

the U.S., increase in the speed of wireless data

transfer and availability of free bar code reader

applications have all made QR codes a viable

option for marketing campaigns, says Ramin

Zamani, marketing director at software com-

pany MindFireInc (mindreinc.com) in Irvine,

Calif. Te key factor is how fast people will adopt the technology.

One early adopter is online retailer Go Green Items (GoGreenItems.com) in ampa,

Fla. Te company mailed postcards, created by ampa-based print marketing rm Direct

Marketing Concierge,to 1,000 prospects in April with a QR code that revealed a discount

code and a link to its Web site. Within a week, Go Green Items received three orders from

people who had scanned the bar code. Mindy Charski

Mix YourMedia

wan o ncease sales and exand ou cusome ase? the posal C

(pCC) can hel. is a chance o neok h ou ees, e hel s

n ssues and lean ho o e he mos fom osal oducs. Fnd

usps.om/nationap/joinoap.tm.read moe aou pCC

Get ree Advice

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b y t h e m b e r

j y r p c c a t t r a c t b e

65 ppoon of makees ho sa he

comanes have no nceased evenueo oed usn socal meda.1

2 3Nume of eole ho efe n

caalos o onlne caalos.2

500 mNume of 2010 census foms maledo U.S. households and acked usninellen al.3

1 R2integrated,April 14,2010. 2 PitneyBoes.3 U.S.Census Bureau.

ore small businessesare using dire mail o ara

new liens. lmos hal(47 peren) onsider mailimporan o nding new

usomers or members, up18 peren rom 2009.

l y a l t y p r g r a m

are influenced

to buy becauseof loyaltyrogras

want ore

relevantoffers andindividualizeddeals

52% 7058%

Consumers see value in loyalty programs, bu

marketers to understand them better and drelevant and valued offers. Deeper engagepersonalized contact drive loyalty, not mass munications and gimmicks.

Source:LeadingLoyalty: Feelingthe Love from the LoyaltyClubs, 2010 CMOCouncil

ptg

dont ruin your relation

YOSOLDOW

4 delivermagazine .com j u l y 2 0 1 0 j u l y


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deliverables ptg

teve Piaiverit Autowerks, Hud s o n ,

pcha eneaed $8,000 n sales an

aen a male o 3,500 ud,

posche ones hn a 20-mle ad

auo ea sho. the oscad, hc

shos sevces as cosn less han

elded a 400-ecen ri makn

successful maken caman o d

oann ussicontours xpress, Lodi, n.J.

glussch uned o dec mal hen

een enean acans fo h

36-eek eh loss oam. pos

6,000 omen hn secc ae an

hee Zip Code locaons elded 2

the omen sen a oal of $12,50

of moe han 500 ecen.

ito cururuPiz Automation aet l.P., C

Cucuus sees of hee vaale daa

eneaed leads fom 4 ecen of h

maln ls, he also landed he com

cusomes. posecs eceved one o

scedve o en, a secal eo, o

hen he called he sales eesen

nfomaon as added h vaale

Aaron corsonMarketPat, s. Louis, Mo.

Coson undescoed he messae o

semna on he enes of comnn

mal effos nvn ecens va

oh. tue o oc, he eceved he h

(moe han 10 ecen) fom hose

he e-mal and dec mal ece. the

aed 170 leads.

Are ou a sma business wit a smart marksare? e us about it at deivermagazine.

We just migt eature it in a uture issue.

Talking eadsSandou soluons fom m a l l b z m a r

Join theCompetitionSmall usnesses nd success nooln he maken dollas

Dont have a big marketing budget? Consider

partnering with other local businesses to

make your dollars go further.

It worked for 32 Cape Cod, Mass., small busi-

nesses and the local division of a waste collecti on

provider. Each paid just $1,000 to participate in

a highly targeted lead generation campaign.

As a small business owner, its tough to send

prospect mailings to large amounts of peoplebecause of the expense, says Joe Jamiel, owner

of Ardeo, a restaurant with ve locations that

participated in the program. Tis co-op pro-

gram is an incredibly cost-eective and unique

way to market my business.

Dynamic marketing communications rm

Curley Direct of South Yarmouth, Mass.,

developed an oversized trifold mailer for

the group, which was sent to the primary

residences of 27,700 owners of area vacation

homes in May 2009.

he personalized piece included the

advertisers logos and invited recipients to

visit a personalized URL (PURL) for exclu-

sive offers. More than 2,200 people or

8 percent of recipients went to the PURL

and clicked on an advertisers link. Nearly1,000 people shared their e-mail addresses

to receive future offers.

Tanks to the programs success, a similar

mailing went out this June.

Simply carbon-copying your English-language mailer for multiculturalmarkets wont work. In this new day of tighter budgets, all marketers willwork smarter, and the smartest ones are starting to realize that culturallyinformed marketing generates the most effective desired outcome.

Alberto Padrn,directorofintegratedmarketing,Zubi Advertising

t e l l g e t m a l f g r a p h c

t r e t c h y r b g e t

o Postageecessaryinellen al hels allmakelmnae sams

Inteigent Mai is making it simper orhamark ustomers to send persona

greetings wie eping te Kansas

cit, Mo.based ompan easi trak

piees as te enter te mai stream.

hamarks new Postage-Paid Post-

ards wi it store seves in Ma

ome wit prepaid first-cass Mai

postage, eiminating te need or on-

sumers to pae a stamp on tem.

Wen maied, Inteigent Mai bar-

ode tenoog inked to te post-

ards noties te Posta ervie tat

postage was prepaid wen te on-

sumer purased te ard.

ese Postage-Paid Postards

reate a onveniene weve not

oered beore, sas cind Maone,vie president o produt deveop-

ment at hamark. A onsumers

need to do is out te postard and

drop it in te maibox.

WAE P,MARETERS.You say you recognize Hispanicconsumers growing inuence. Still, more than half of you dontmarket to Latinos in Spanish, and 82 percent have no plans tobegin or increase eorts aimed at Hispanics. What gives?

Wy cmpai at maktig t ipaic

feel current

marketing iseffective

dont feel the ROIwould be justied

dont havethe budget

lack language/culture familiarity

dont know

where to begin

Source:Orci2010 MarketingTrends Survey

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deliverables deliem g raphc leaer c lm

Is sending direct mail to green moms mothers motivated by and comissues counterintuitive? Not if its done right, says sustainability,sumer behavior expert Andrea Learned. Anyone whos serving a sustashould be watching green moms, she says. Tese women are very intheir peers, and their momentum is building. Reach them by practicinhygiene, using environmentally friendly papers and inks, and matchinand website messaging. Christine Hansen

O REE

tree-quagreen mo

en Mie

6 in 10 green momsare married.1

3 in 4 green momsave pets.1

1 in 4 is aomemaker.1

Were te ive:1

34.6% .... ew ngand and Atanti states42.8% .... ort and out centra ..8.8% ....... Mountain states13.8% .... Pai states

AA HHI:1

16.8%ess tan $25,000

41.6%rom $25,000 to$74,999

35.3%

$75,000 and over(Percentages do nottotal 100 because notallrespondents ansered this question.)

look for products

and services thathelp preserve natural

resources for their kids

and grandchildren.2

look for products

and services

that come from a

socially respon-

sible company.2

REE OS HOOE OR AAS:1

ry new products ..... 37.4%Buy store brands ......58.0%Buy name brands .....47.2%se coupons ........... ..50.7%

60%

74%

1 Earthsense 2009 Eco-Insights Survey.2 R esonate Netorks.

Great space has been given online and oine

recently to tout the newest digital killer app a new e-reader which shall remain name-

less as the savior for the magazine indus-

try. No more must we worry about how our

ever-expanding arsenal of digital devices will destroy magazines;

this one can help save them.

So imagine the consternation it must have caused when

the CMO Council released a study that found that consumers

actually prefer gasp! printed magazines over their digital

counterparts. How many? Ninety percent of those surveyed said

theyll hang onto their print magazines, even with the option of

an e-reader or online counterpart.

If this feels like dj vu all over again, its because it is. Te

obituaries for print have been many and myriad over the past

two decades and obviously wrong. While it is true that

consumers have found much to love about the digital tools

we now possess, its also true that they havent come close to

giving up on print.And why would they? o borrow a phrase from the digital

lexicon, print is user friendly: Its portable, accessible, visually

compelling, highly eective and a real value. Teres no reason

for users sorry, consumers to give up on it. For them, its

not a choice of one or the other, its a matter of using both print

and digital for dierent objectives.So, should we be surprised that nine out of 10 people want

to hang onto their magazines? Tat in the past 11 years, as

search engines have begun to rule our online lives, print

magazine readership has risen 4.5 percent? Tat print still

delivers a higher level of engagement and returns a signi-

cantly higher response rate?

Its not a surprise to marketers. Spending on all forms of print

still dwarf the spend on online advertising (direct mail alone is

more than $29 billion vs. $7.8 billion for Internet display ads).

Arguing about whether digital will supplant print next year

or the year after that or the years after that misses the point. Its

not about independence, its about integration.

ime after time, marketers have proven that the two media

work better together. Print is the push that complements the

Webs pull. As catalogers know well, a print piece not only drives

additional trac to the website, it increases the amount that

people spend when they arrive.Prints demise may be overstated, but it would be just as fool-

ish to ignore the growing dominance of digital. Smart marketers

are nding ways to blend the two to create an even more power-

ful connection to their customers. Are you?

Who Will Save Print?

DigitaL

ViSioN,JUpitEr t

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deliverables deli

l sM

Todays marketers face a

signicant set of chal-

lenges in reaching con-

sumers. Tey must be

innovative, stretch

boundaries and really reach to create

breakthrough messaging or a strat-

egy that will capture attention and

engage consumers. Let me give you an

example of how the Postal Service

recently helped a marketer do just this.

A large national retailer created a

mailing program that included xing a

coupon card to the outside of a catalog

to help promote its oer. When cus-

tomers used the card, the retailer could

track the business it was generating.

Would it drive sales? Absolutely.

But the cards positioning did not meet

Postal Service standards. So, we met

with the retailer and its marketing part-

ners to devise a mailer and a card that

would meet the retailers needs, while

meeting the standards we needed in

order to process it. In the end, the retailer

got a much-needed business boost, and

we provided a solution that helped.

Tats the kind of partnership we

think would help all marketers. We

want you to seek innovative ways to use

Postal Service products and services.

But make us part of the planning pro-

cess so we can oer insights that may

save you hours and dollars in the end.

I was reminded of

kind of dialogue could dat the National Postal F

was an opportunity for

to-face with some of the

marketers, to kick aroun

their feedback on how w

help them deliver on th

More than that,

chance for those busin

similar conversations w

exchange ideas, share

glean insights from o

faced with the same cha

Te NPF wont come

until next spring, but Id

to attend your local Po

Council (PCC) meetin

cils, made up of the satic professionals, oer

to network with your

issues with Postal Serv

tives and, ultimately, co

that can make you a be

In fact, National PC

15 is the perfect reason

what your local PCC has

hear whats happening

ally and in your area, m

Service representatives

with other marketers in

more information abou

offered in your area

nationalpcc/joinlocalp

Consider opening a d

Postal Service. We want t

your business. We can h

innovative solutions tha

keting noticed, and, mo

meet your business obje

C

ULtUra,maStErFiLE

Does return on social mediajustify the spending?

i hnk s moan ha nonos con-

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allocae esouces o socal meda.

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and non-adonal audences.

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rom us beause peope dont

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work and-in-and wit oter

annes, weter its diret

mai or an in-store promotion, to

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te branding ou want to get in

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10 delivermagazine .com j u l y 2 0 1 0 j u l y 2


7/18

deliverables phg the ev elpe

You wouldnt typically expect to

see origami and tractor in the

same sentence, but that unusual

combination sums up the thinking

behind a dimensional mailer John

Deere used to distribute a comprehensive collection

of digital images last year.

Te Moline, Ill.based maker of farm equipment

wanted a fresh approach for delivering the stock

photo library it periodically sends

to media, marketers and adver-

tising agencies in the agriculture

industry. Our video manager hada mock-up of a folding paper auto-

mobile that hed picked up from

one of our suppliers, recalls Barry

Nelson, media relations manager for John Deeres

Agricultural and urf Division. You could open it up

and look inside. He said, Wouldnt it be great to take

a John Deere tractor and do the same thing with it?

We loved the idea.

Working from photos and illustrations, an in-

house team created an elaborate design for a scaled-

down replica of a recent addition to Deeres 8030 line

of high-power tractors. We wanted it to be as accurate

as possible because our target

audience knows our tractors

very well, Nelson says. Tey

can look under the hood and

know every nut and bolt and

every part of the engine and

transmission.

Te team sent its design

to Structural Graphics LLC,

an Essex, Conn., agency that specia

dimensional marketing pieces and di

ect presented some paper engineer

recalls Structural Graphics presiden

Among other things, we had to co

of the paper so that it worked with t

than against it, he says.

Ten there was the question of ma

3-D wheels from a at printed sheet

lots of bends and curves and maki

kinds of things it isnt designed to do

Ultimately, Structural Graph

pint-sized tractor that not only rollpaper tires, but also unfolded to let

at its highly detailed interior. You o

the cab, and you see the seat, says

You open the hood and you see th

keep opening it up, youll see a as

Deere packaged each fully ass

with an eight-page directory of ima

drives photo library. Ten the com

boxes to its key media contacts.

While the company didnt forma

requests for information were high

after the mailing, Nelson says. But, h

win came in t

especially on fa

and websites

But for the

keting team,

seeing its proj

Nelson, Wer

with social me

one really took

Sowing CuriosityReaping ResultsJohn deeres foln 3-d ror roe len of nqn lle n jor wr. Anne tuart

sEEDING IDEAs: ochue n

he shae of a aco caed a ashdve of edoal maes.

rrl grhsroe n-szeror h no onl

rolle on 3-d er res,b lso nfole o lereens ee shhl ele neror.

h IAlCompan: John Deee (Lenexa, Kan.).Agenc: Sucual gahcs LLC (Essex, Conn.). Target Adience: 1,200 ke memes

of aculual meda (jounalss, loes, maken and advesn aences). Goa: Encouae ecens o ve and use sock

hoos of John Deee equmen on enclosed USb ash dve. DM Vehice: 3-D ae aco elca (9 5.5 4.5 nches) ha

oens u o eveal ash dve h 180-mae hoo la. Repone: Uck n e afc and e-mal nques, uzz on nuenal

los, ndus maken assocaon econon.

JoEVaUghN



8/18

AlPHAMAIOnly 28, CHRIs NEwMANhabecome a leader in direct thanks to aapproach to marketing creativity.

e caught the advertising bu

while pursuing a double degr

in ne arts graphic design anadvertising at Iowa State Un

versity, then saw his passio

fully bloom during internship

at Baltimores Round2 desig

agency and the Martin Agenc

Student Workshop. Chris Newma

is just 28 years old, and his career is re

hot. Currently a senior art director at Eur

RSCG Chicago, the young advertising maverick has earned mu

tiple awards for his work on behalf of several brands. But its New

mans endishly clever array of mail campaigns for Sprint Nexte

that have the direct world buzzing.

While many of his Gen-Y peers focus almost exclusively on th

Internet, Newman has made marketing headlines by applyin

Web-inspired dynamics to that tried and true response-gette

direct mail. I always try to create direct mail pieces that w

get people to want to interact with them, says Newman. Mayb

its because Im so used to having the Internet. Its about takin

that online interactive experience and bringing it into a dire

mail/print form.

rue to his philosophy, Newmans direct mailers veritab

scream, Play with me. ake his award-winning 2009 maile

ackle Everything Faster. A B-to-B Sprint project that gives fres

by bruc ebr i t t | photographsby mattbarn

j u l y 2


9/18

meaning to the phrase reeling em in, the cam-

paign was engineered to entice primary decision

makers at vertical businesses. Devising a tackle

box that he dubbed a solutions tool box, New-

man placed his enticing teaser message clearly

on the outside of the box, cautioning recipients,

Dont let this one get away.

Inside the box, recipients are presented with

shing supplies, including lures, shing wire,

bobbers, sun block and more. Also included is a

brochure promoting Sprints work-grade commu-

nications and a business card for a Sprint salesrepresentative. Sprint produced more than 500

boxes for the campaign, with more than 5 percent

of recipients rising to the bait.

Ten theres Newmans 2008 back-to-school

Sprint mailer, Dissection. It allowed more

than 600,000 college student recipients to vir-

tually dissect a frog by tearing open a center

vertical perforation revealing a card detailing

Sprints latest phone components.

Both pieces underscore for Newman the

unique sensuality of direct mail. What makes

direct mail so appealing is finding that you can

interact with the piece, he says. Since direct

mail is tactile, the goal for me is to have people

open it up and examine it. heres something

powerful about being able to hold something

in your hand and explore it on your own,whether its peeling something back,

or scratch n sniff, unique stickers or

different print techniques. Its defi-

nitely a real experience, as opposed

to a virtual experience.

Which isnt to say he doesnt

know how to leverage virtual

experiences with mail. Consider

the B-to-B mailer he designed for

Sprint Mobile Broadband: It placed

recipients into virtual, lifelike working

environments including a coffee shop and

a diner a creative device Newman used to

show that consumers could transform any setting into

an office using the service. More than 10 percent of

recipients responded, while Newman nabbed two empo

Awards for the project.

He has also won several other honors, including a 2010

Emerging Leader Award from the Chicago Direct Marketing

Association and several AMBI Awards from the Kansas City

Direct Marketing Association. Te Chicago Sun-Times hailed

Newman as a man on a mission to dispel the misconcep-

tion that direct mail pieces are dull.

skys THE lIMITHailing from Sioux City, Iowa, New-

man expressed his creativity from a

young age, exploring drama, pho-

tography, art, music, choreography

and even politics (he was student

body president in high school). Tose

early experiences serve him well in his

current job. Trough acting and other

artistic experiences, I learned how to put

myself in the mindset of others, Newman

says. When youre acting, you really have to think,

Who is this person and what would be relevant to them? One

part about marketing and advertising is that youre market-

ing to a dierent audience every day, whether youre targeting

mobile moms, college students or a boomer audience. [Art] is

a great way to step outside of yourself and be someone else.

And direct mail aords him the chances to unleash

some powerful artistic impulses. I love it when I get these

[direct mail] assignments, Newman says. Te challenge

is always great but the skys the limit when it comes to

conveying something.

MA A MIhe misonepioarray o ampaigbu engage wih have inluded a ound a way o mleing ollege suearing open a peomponens (le

wHAT MAkEs DM s APPEAlING is nding thaact ith the piece. Since direct mail is tactile, the goal for me is toopen it up and examine it. eres something poerful about besomething in your hand and explore it on your on Its denitexperience, as opposed to a virtual experience. w



10/18

A swEET ffERAnd that approach has led Newman

to churn out some of the best recent

work in the business.

For instance, as part of a mar-

keting push for Sprints Wireline

Convergence Wireless Integrationsystem, which integrates consum-

ers personal smartphones with their

Private Branch Exchange business lines,

Newman took full advantage of mails tac-

tile power by devising a B-to-B direct mailer that

included a jar of peanut butter and jar of jelly. We came up

with the concept of two things that are completely separate

but really work together as a whole, Newman says. Know-

ing that we needed a high-impact DM, we asked, Whats the

ultimate combination of two things? Tats how we came up

with peanut butter and jelly.

Te campaign which also included an oer for a gift

card for pricey steaks exceeded the goal by more than 300

percent. Our client told us that the Sprint national account

managers loved the concept so much that when they were

scheduled to go to appointments, they were actually bring-

ing loaves of bread to go with the peanut butter and jelly,

Newman laughs.

Not long after that, Newman put together a hit B-to-C mail

campaign for Sprints Handset Upgrade Optimizer, a portfolio

of new, feature-intensive devices. Newmans job: Entice exist-

ing Sprint customers to renew their contracts by informing

them about the companys new, feature-heavy phones.

He created a gorgeous foldout mailer that spotlighted the

array of new Sprint phones and carried the theme One. wo.

Tree. More. Measuring 6 inches by 9 inches when shut, and

12 inches by 18 inches when fully opened, each page of the

mailer featured smartphone screen shots highlighting a

certain PDA feature. Te introductory page is devoted to

texting (One.), another to the web (wo.), another dedi-

cated to e-mail (Tree.). A nal page details the full capa-

bilities of the entire Sprint handset series (More.). Tat was

the idea when I was designing it to have it continuously

open, and get bigger and bigger, so that the last reveal of the

three phones feels exciting, says Newman.

More than 150,000 pieces were mailed July 14, 2009, with

an initial intended run of three months. But when the

response rate topped 10 percent, the Kansas- based company

extended the mailers run for two additional business quar-

ters before refreshing the format in 2010.

Newman says the campaign, which included versions

for Baby Boomers and Millennial generation users, allowed

him to explore how technological breakthroughs are further

Tat sort of thinking has led him to

view the world as his own personal

petri dish, where he can collect, cul-

tivate and grow ideas. I draw inspi-

ration from everything, he says. If

its Saturday and Im out in the city

and I see something, I think, Oh,thats really cool I should keep that

in the back of my mind. Ill tear things

out of magazines. If I see cool products

or tchotchkes at trade shows or auto shows,

Im always trying to think how I can integrate

something like that into what Im doing.

But as whimsical as his pieces may seem, Newman quickly

points out, Strategy is at the center of all my ideas: Who are

you talking to? What are you trying to say? How can you best

communicate your message in a way thats relevant to people?

How can you make the consumer understand it in a way thats

engaging for them? You look for an idea that has legs.

Another aspect of Newmans approach is a creative philo-

sophy he calls Responsible Design. Its just being really respon-

sible with where you place things really thinking about

where the headline is, where the images are, where the prod-

uct and the price points are, he says. It means that every-

thing has a place, a purpose and a reason for being there.

Jennifer Wood, Newmans supervisor and Euro RSCG

creative director, concurs. Chris approaches design from a

deeper level, using strategy as the center point for develop-

ment. Everything has a reason, and his thinking lives in per-

fect harmony with his art.

boosting the versatility of mail. Te handset upgrade piec

was a great way for me to learn how I can take advantage

all todays new technologies and printing techniques an

how we can customize and tailor a piece toward specic cus

tomers, he says.

Of course, Newman acknowledges that he learns some

thing new with every project. Perhaps the biggest lesson o

all? Newmans award-winning work has cemented his fait

in the bulls-eye impact of direct mail. One thing I really lik

about direct is that you can reach a specic audience wit

a specic message, he says. Youre focusing your messag

directly toward a person who has a higher p ropensity to wan

to respond to your oer. Its great that you can really targe

an audience like that. d

cAI ch:ewman oo ull advanage o mailsaile draw or a -o- ampaign ha inluded a jar opeanu buer and a jar o jelly (opposie). blew away hegoal response rae by more han 300 peren.

Our client told us that theSprint national account managerslVED THE CNCEPTs MuCH that hen they erescheduled to go to appointments,they ere actually bringing loaves

of bread to go ith the peanutbutter and jelly. w



11/18

As pizza chains go, z

be the largest b

ensure that its link

the strongest in th

Hoping to seiz

business, the Cal

recently created a

bining direct mail

consumers to join its ztribe loyal

which is known for gourmet

such as shiitake mushrooms, ar

are building the club today with

more business with recruits in tOur goal is to have 1,000 h

order at least twice a month and

each of our locations, says Bran

of training. If we can identify th

in our loyalty database, we know

accomplishing that goal of reachi

already part of the repeat cliente

Te campaign centered aroun

were sent last August and Octob

zpizzas 86 stores nationwide. (A li

in-store, too.) In the August mailin

sent out; that number increased

October. Te mailers contained a

that revealed a code that recipie

company, along with their e-mail

Te majority of the prizes con

pon oering, but there were also

denominations as well as two gra

in the rst round of mailings, and

of the campaign. Te card was t

aged people to text in, and once

ately got a text response back fro

to check their e-mail to see wha

edia use

Mai, e-mai, mobie

oal

uid members in oat ub

umber o piees mailed

Approx. 500,000

esponse rae

ver 1,900 text-in entries

coupon redempion rae

1.5 perent

egisraion rae

Inreased near 20 perent

AKI HOS O AREAIOSHA pizzerias loyalty campaign paired maunderscore the importance of nding nebusiness with your best customers.

bypaulaandruss | illustrationsbyzoharlazar

storyataglance



12/18

shiting loatiebusness auho Jll gfnexlans ho loal oamsae chann and ho oucoman can kee u.

Goodwin, account executive with BrandStand

Group, the agency that executed the program. Tat

e-mail also prompted them to join the club because

it contained a link to the loyalty program.

Repeat rewards

Its widely understood that cultivating repeat busi-

ness can help boost the bottom line in several ways.

Most recently, a study from U.K.-based business

intelligence consultant Retail Active found that it

can cost as much to gain one ne w customer as it doesto keep ve existing ones, and that repeat customers

typically spend about one-third more than new ones.

And although some small businesses dont always

believe they can aord loyalty programs, more vigor-

ous pursuit of existing customers can increase sales,

reduce costs and facilitate deeper communi-

cations, says Christie Nordhielm, associate

professor of marketing at the University of

Michigan Ross School of Business in Ann

Arbor, Mich. Repeat customers are the

heart of any business, she says. Retained

customers are always far more protable

than newly acquired customers. Tey have a

better understanding of the brands benet

and value, and they are easier to nd and

communicate with.

Nordhielm says another key benet of

loyalty programs is that they strengthen the customer relationship, making customers

more heart loyal less likely to defect to the competition.

Tats a denite consideration for zpizza as the company tries to set itself apart

from competitors that include the nations largest chain pizzerias. Teyre trying to

overcome [comparisons to large rivals] not just because they want to be considered

better, but also because those huge companies have huge marketing budgets and their

deals are out of control, like $5 pizzas and buy-one-get-one-free oers, Goodwin says.

o combat that might, Goodwin says the company wants to showcase its products

and its distinctive identity, and then hone in on zpizzas best customers to increase rev-

enue. Youre better o utilizing your communications to those customers rst because

theyre already loyal and pose a smaller risk of leaving for the competition, she says.

Capturing loyalty

The program implemented by zpizza included some key elements to loyalty suc-

cess. Notably, the restaurant oered the prize without requiring recipients to

make a purchase. Also, the pizzeria told recipients what they had won before

asking them to join the club.

Nordhielm says companies should seek to delight customers by surprising them

with rewards that are not contingent on them taking certain actions. Te wrong way

for loyalty programs to work is for the company to emphasize the fact that the reward is

contingent on purchase behavior. Tis makes the reward program seem like just another

pricing trick, she says.Te point is to truly reward loyal behavior and to transform

the relationship.

Loal jus sn ha used

o e, sas maken uu Jll

gfn u has K. lo of comanes sll

confuse loal oams

h ead oams, sas

gfn, auho of he es-

selln Customer Loyalty:

how to Earn it, how to

Keep it. ive een okn

n hs aea snce he lae

80s. thee have een a

lo of chanes n ha he od loal

means dun ha me.

Delveralked h gfn o e he

ake on he evoluon of loal oams

and ha odas makees should do o

n moe usness fom he cusomes

he alead seve.

DElIVER: how do ustomers ep

ou earn?

jIll GRIffIN: Cusome needs ae

chann, consanl evolvn, e us-

ness-o-usness o usness-o-consume.

Cusomes can hel ou sa on o of he

value cuve and hel ou nd as o

delve exceonal value.

No, ha doesn mean hee on

o call ou u and sa, e, hees m

houh fo he da. you have o d fo

ha nfomaon. you canno deend on

hem o sell ou n a focus ou. Fnd

he ehavos of ou es cusomes,

undesand h

aa fom ou

oehe he

DElIVER: W

trends in o

GRIffIN:th

aou edeem

moe aou ac

ences. Lke h

cusomes hefo a majo oc

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n ou access

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DElIVER: W

wrong in us

GRIffIN: i

ome daa, u

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value and sha

and ncome d

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you an o n

jus hos se

ou h no

Maximizing mail

With the successful elements of the loyalty campaign in

place, both Goodwin and Babb say that direct mail was

a natural choice to get the message out to consumers.

Goodwin says mail allowed them to target a very

specic geographic area surrounding each of the companys

locations, which led to a higher return on investment. Te mail-

ers range of targeting was no more than three miles outside

any given store, depending on factors such as location density

and proximity to other locations. In most cases they went out

to consumers within a 1.5- or 1.75-mile radius of the store.

Direct mail is an ecient method for marketing your

brand and message exactly where you want it to go, she

says. You can waste a lot of money going to the masses

cheaply and then not knowing if youre getting your mes-

sage to the people you really want to see it.

Babb says that, thanks in part to the still-soft economy,

the number of mail marketing oers in her industry has

increased aggressively. As a result, zpizza wanted to appeal

to consumers with something completely new. Te scratch-

incentive card was an opportunity to open the door for some-

thing unique that would get people to actually stop and look

at it to see if they could possibly win a prize, she says.

hus, the company executed the blanket

mailing with the goal of reaching out to people

who were close to its stores. Along the way to

touching many repeat customers, the marketing

messages also reached some who werent neces-

sarily familiar with the restaurant. It gave us an

opportunity to try a dierent venue and a new

way of reaching potential guests we may

not have reached in the past, Babb says.

Protable returns

Not only did the mailers reach newguests as well as those whod eaten

at zpizza before, the mailings

stirred the recipients to action.

Te August mailer garnered more than

500 text-in entries and a redemption rate

of 1.5 percent. In October, the company

received more than 1,400 text entries

and a similar redemption rate. (Goodwin

says that because not all stores submitted

their redeemed coupons to the agency, the actual

redemption numbers are likely even higher than

that.) In addition, ztribe registration increased

by nearly 20 percent compared to the regular

sign-up rate.

While the company doesnt plan to repeat

this particular promotion, Babb says that

because of its initial success, she expects

another loyalty promotion in the near future.

People were asking questions about the

scratch-o and sending us lots of comments

about it, which means they were talking about

it, Babb says. Te driving force was to add

more members into our loyalty program, and

that goal was certainly achieved. d

Retained customers are always far moreprotable than newly acquired customers.hey have a better understanding of thebrands benet and value, and they areeasier to nd and communicate with. Christie Nordhielm, associate professor of marketing at the University of Michigan Ross School of Business

loat b te umbers

loat experts i rin and ain &

compans frederik eied, autor

o The Loyalty Eect: The Hidden Force

Behind Growth, Profts, and Lasting

Value,sa:

Aquiring a new ustomer an ost up

to ve to 10 times more tan retaining

an existing ustomer.

A 5-perent inrease in ustomer reten-

tion resuts in a prot inrease o 25 to

100 perent.

n average, exis

67 perent more

20 perent o us

80 perent o tot

eed was to enane

our oat program?

ownoad our loat

trategies wite paper at

deivermagazine.om/strateg/.

tom

NULENS,StoCK

VECtorS,gEttyimagES



13/18

j u l y 2


14/18

Sure, at Deliverwere always talk-ing about the power of direct

mail, about how it can inspireand engage consumers. Andthat talk is true: Mail endures as

a favored channel largely due toits adaptability, unmatched tac-tile power and measurability.

But when it comes to the creative breadthof mail, we dont have to talk. Now, you can seefor yourself.

Tats because weve devoted the next coupleof pages to our own little gallery of sorts. Ashowcase of colorful and attention-grabbing

pieces that we think all underscore mails sen-sory appeal.

Tey vary in size and shape and have beensent by companies large and small. But eachpiece is bright and engaging in its own way. Most

important, each piece has served to advancecritical business goals such as fostering brandawareness and driving customer loyalty.

And each did so by seizing on the unmatchedability of mail to put an oer directly into a tar-gets hands. You can touch it, fold it , hold it up

to the light.You can see for yourself.

chlIAh

WAPAK

Al: enerae buzz

or hlierbahns new

congo iver xhibiion,

a mulisensory jungle

advenure ha apures

he beauy and danger

o he congo.

lI: hli-

erbahn deided on a

mailer ha olorully

onveys he mysery

and hrills o a rainores

expediion. the piee

also was handed ou o

par visiors on arrival.

MA A

IIy AA

cAI & PlIc

Ach

Al: Promoe he

shools duaion

& Publi ureah pro-

gram, whih rains eahers

and develops lassroom

learning maerials.

lI: Woring

wih 3 Paper raph-

is, he shool deided

o disribue oval eep-

saes o ommemorae

he launh o t

(gamma-ray large area

spae elesope).

AcA AIAl

AK/hI AI-

I & I

Al: eah prospes

as par o a usomer

reenion ampaign.

lI:eaoas

ommissioned a walle-lie

piee ha, when opened,

eaured rubber-band ai-

vaed pop-up ubes ha

onained serial numbers.

eipiens whose numbersmahed serial numbers on

bills displayed a he ban

branhes won prizes.

P

Al: Heighen brand

awareness and gener-

ae leads or ollow-up.

lI: Prin mar-

eing speialiss cole

creaive devised person-

alized, 12" x 18" movie

posers ha were sen o

lm exeuives. eipi-

ens were as as he

sar on he posers and

ex alled ou heir ileand ompany name. the

piee helped generae

millions in new revenue.

topLEFtaND

right,bottom

right:proDUCED

by3DpapErgraphiCS/topLEFt:U.S.patENt7,490,425/bottom

LEFt,proDUCEDbyCoLECrEatiVE



15/18

aboVELEFt:proDUCED

by

3DpapErgraphiCS,U.S.patENt7,707,757/topLEFtaNDright:proDUCED

byCoLECrEatiVE

In its earliest days, multisensory marketing focused

largely on placing scents on paper, providing a potent

marketing tool for many cosmetics and fragrance

companies. But the eld has since evolved dramati-

cally. oday, marketers wield an array of ne w materi-

als and high-tech accessories designed to engage mail

recipients eyes, ears and noses. Tese include:

mprve paper tck: Marketers can

choose from an assortment of paper types, fromheavily recycled stock to paper made from stone

powder to the latest hot item, holographic paper.

Holograms diract light by changing normal white

light to various colors, points out Mike Messmer,

general manager of NovaVision Inc., which distrib-

utes holographic paper. Holograms can also show

unique optical illusions like 3-D depth.

electrc: Marketers are starting to embedvideo and audio chips in their mailers and other

printed pieces. im Clegg, the CEO of Americhip,

which has used the electronic devices in various

campaigns, says the chips are designed to immerse

recipients in a fuller brand experience. When you

combine audio with tactile or audio with illuminating

technology, it enhances the whole experience, says

Clegg, whose company also plans to incorporate 3-D

into its video mailers this summer.

cete a eble pece: rue to itsname, multisensory marketing means engaging as

many of the ve senses as possible. As a result,

marketers are boosting campaigns with items such

as scented postcards and printing technology that

allows brands to place a scented varnish onto a

printing press and then onto a page.

Meanwhile, First Flavor, a suburban Philadel-

phia marketing company, works to combine three

senses sight, smell and taste. First Flavor creates

edible lm strips that dissolve instantly and give

you a taste and scent of the clients product. By

adding a sense of taste and smell for a product,

you create a way to have that consumer engaged,

says president and CEO Jay Minko. Tere is an

emotional bonding that creates loyalty.

Explaining how these additions could multiply

the impact of direct mail in an increasingly com-puterized world, Clegg sums up their impact this

way: Although we live in a digital world, humans

are still analog beings. We still respond to sound,

sight, taste and smell. Lekan Oguntoyinbo

o a sn de of mulsenson maeals s fuhe nceasnceave oons fo makees.

Materia Dierence

PA

Al: howase Panones

olor managemen soware

o a variey o prospeive

liens, inluding graphi

designers and phoographers.

lI:Panone mailed

personalized posards ha

showed o is soware, eaur-

ing models wih brighly olored

aoos. copy ased reipiens i

hey el as onden abou he

qualiy o olor in heir own wor.

MAhI MAhI cI

A chA

Al: rive web ra, raise

brand ineres and inrease he

number o ruise requess by

businesses and organizaions.

l

mo

nesse

noe jo

ompa

ransom

cs

MA APhIc

Al: oos brand opin-

ion and reae op-o-mind

awareness among poen-

ial liens.

lI: onage

sen a series o personal-

ized holiday-hemed pos-

ards o remind arges

o he ompanys reaive

apabiliies. the mailers

doubled as eepsaes.

MA A IIy

AA cAI & PlIc

Ach

Al: Promoe he duaion

& Publi ureah program by inreas-

ing brand awareness and providing

inormaion abou spae iniiaives.

lI: the shool sen ou

a elesoping mailer designed o

simulae he aions o he uar

saellie, whih has slaed or

launh in 2012. the mailer opened in

muh he same way he s aellie will

open an exendable elesope one i

is in ouer spae.



16/18

It goes without saying that companies have to market to those who

do the buying but, says Xerox Corp. channel marketing manager

Paul Criswell, its just as important that brands market to those who

do the selling, too.

Resellers are looking to get as much out of their relationships

as possible, says Criswell, who manages all communications

between his company and about 3,500 top-tier reseller partners.

Teyre looking for new opportunities to make money.

raditionally, Xerox has done more than many major companies to

empower its sales force, but the last few years have seen the company

step up that commitment considerably, Criswell explains. Blending

high-level creative with an assortment of communications channels,

the print giant has crafted an annual marketing eort for its sales

teams that rivals many B-to-C eorts.

For starters, Xerox kicks off its yearly push to resellers by pub-

lishing and mailing eye-catching guidebooks replete with infor-

mation about the coming years partner program. his year, the

program uses a sports theme, with eam Up with Xerox as the tag-

line. Appropriately, sales reps have received a book entitled Players

Playbook, while owner-operators have been sent the Coachs Play-

book. Spiral bound and printed in full color, the 85-page guides

describe the years sales incentives, demo programs and other

aspects of the overall initiative.

Tey talk about [all the reasons] why you should partner with

Xerox, Criswell says. Weve received great feedback on both of these

books, and I think thats because theyre very targeted.

But the guidebooks mark only the beginning of the eort to sell the

sales team. Creative promotional campaigns build awareness and excite-

ment all year long. In the summer of 2009, for example, Xerox mailed abarbecue-themed sales promotion, tagged Fire It Up, to all its partners.

Te package was shaped like a grill and contained a number of tools, such

as a baster. Te company also used a combination of direct mail, e-mail

and web marketing for a sales contest geared toward reseller sales reps.

sEllING THE

SAES EAHow Xerox motivates and empowersits channel partners to sell more.

By pama dam | iutati By J cca

company

Xerox corporation

niiaive

eseer Program

Marketing

targe udiene

e ompans 3,500+

.. anne partners

oals

eruit and retain

partners, drive saes

revenue, buid o-

at and preerene

or Xerox, avorabposition Xerox or

uture growt

theessentials



17/18

In previous years, Criswell recalls, most of the commu-

nication had been aimed at the management of reseller

organizations the owners and operators. Last years

mailing, though, marked renewed eorts by Xerox to

address salespeople, too. Te program has worked well,

says Criswell. We directed communications to the people

who were getting paid the [sales bonuses], those motivated

by extra cash, he explains.

Weve seen some really positive results from commu-

nicating what they like to hear, said Criswell. Te owners

and operators denitely have dierent needs than their

sales reps. [Resellers] care about the value that Xerox brings to their

business and to their company. We talk about nding discounts when

theyre buying product from distributors. We talk volume incentives

and rebates and demo discounts. We have a training tool speci-

cally for the owners on compensating their partners and reps

around managed print.On the other hand, sales reps want to kn ow, Whats in it for me?

But Criswell says owners of reseller outfits also stood to gain

from the various incentive programs for salespeople, thanks to

rebates Xerox gave them for reps sales activities. he approach

for each group was tailored differently, and grand prizes of cash and

merchandise were awarded, he recalls. It increased sales and the

visibility of the partner program.

Although Criswell wont reveal ROI gures for the campaign, he

insists the marketing push has helped bolster sales. Meanwhile, in

April Xerox announced rst-quarter results that included a 33-percent

increase in revenue.

BEO ICEIEShe marketing programs also have proven to be educational as well

as lucrative for the sales force, says Criswell. Among the companys

triumphs has been the success of Xeroxs efforts to teach its part-

ners new ways to sell. Instead of selling on speeds and feeds [print

speed and specifications], were taking resellers a step further in sell-

ing value and selling a solution, rather than just selling hardware,

explains Criswell.

Xerox has become an expert in building mutually benecial relation-

ships with its channel partners but n ancial incentives alone arent

enough to ensure success. At the end of the day, [we need to communi-

cate] to resellers what we bring to the table and that our value proposition

will translate into more customer sales, says Criswell.

Marketing eorts such as the guidebooks help Xerox surmount

communications barriers that confront many major channel market-

ers. For instance, because resellers typically dont have the resources or

time to train every salesperson on all the companies and products they

might represent, product education is often insucient. And engag-

ing, informative marketing only enhances attempts to teach and

captivate a resellers sales team.

Programs like these reect the companys long history of reaching outto its channel partners, and they are frequently cited as examples of best

practices among major businesses. In April, for instance, the company was

named overall winner byCRNmagazines annual Channel Champions

Awards, a recognition Xerox has repeated for four consecutive years.

Te quality of a vendors partner program determines how prot-

able its partners will be, said Robert C. DeMarzo, senior vice presi-

dent and editorial director of Everything Channel, CRNs publisher, in

a news release last year that announced Xeroxs win.

Understanding the channel relationship is important to gaining

knowledge about how to motivate partners. Companies use channels

to carry the cost of sales, while channels seek to minimize their sales

costs by encouraging companies to perform services for them, accord-

ing to BNE business blogger Georey James.

IXI CHAES, SERI EESIn building bonds with his sales partners, Criswell has developed a

potent multimedia approach to addressing their varied needs. With

the [advent of] the digital age, a lot of people have begun to go elec-

tronic. But we try to have a good balance a mixture of electronic and

print media, says Criswell.

Criswell believes his multichannel str

competitive advantage over rival marketer

digital communications alone. Our compet

their partners, Hey, weve posted [marke

tion] online. Go and print it or save it, h

laugh. We take the extra effort to send it o

because we know that way, it will sit on the

there at their fingertips.

Along with the guidebooks and mail inc

oers webinars, road shows and nationwid

training. Programs such as Te Builders Seri

sales representatives create high-quality cu

ing tools from PDFs that can be customresellers call-to-action and website URL to

web builder that speed promotional eorts

For other companies looking to sell thr

partners, Criswell says its important to st

competitors and in constant contact with cu

important, keep things simple. Make it eas

ness with your company than others, he ad

your partners. each them to sh instead o

the sh. Can you provide training, educatio

to improve their business? raining is a bi

cially in this crazy economy of ours.

Te rewards of selling the sales team are

and intrinsic, according to Criswell. We d

at nancials. It really is a balance, he insist

how engaged [channel partners] are with

demos they have purchased with us, how

tions theyve created using our marketin

we can accurately see if were making an im

helped them grow their business.

Because in doing so, Xerox also helps to g

At the end of the day, [we need to communicate] to resellerswhat we bring to the table and that our value proposition will

translate into more customer sales. Paul Crisell , Xerox Corp. channel marketing manager

please adon he sales eam fo

non ou.you see, he same focus ha

makes man sales eams successful

a movn oducs fom shoooms

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also can e a ae o small ands

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oduc nfomaon and ncenveoffes. Fo small and md-szed us-

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den moae okes. the cads

desced vaous naves he

lende had se u and offeed o-

kes he chance o n vacaons,

alances and ohe fs. the

male also conaned udes, uo-

als and s fo he okes.

ve he camans un, hecoman moe han douled he

nume of okes n s daa-

ase, fom 40,000 o 86,000, and

nceased ooked loans moe

han 35 ecen annuall.

lo of mes, e do moe of

an neaed aoach, exlans

Kean-ean, hee [he

ecen] mh e en e-mals

n addon o mal, alon h ohe

ade m

dec m

unque

malox

nees

Ma the sae force Be ith yo

n ncenve-laden mal caman hels a mdszeeal esae lende alvanze moae okes.



18/18

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deliver magazine volume 6 issue 3 july 2010

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