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Mastering MARMastering MAR--COMCOM
Proven Direct MarketingProven Direct MarketingTechniquesTechniques
March 29, 2001March 29, 2001
JOHN M. COE
DATABASE MARKETING ASSOCIATESSCOTTSDALE, AZ
480-778-9900
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4 Levers For Successful Direct4 Levers For Successful Direct
Marketing CampaignsMarketing Campaigns List 50%+
(Targeting & Segmentation)
Offer 20%
(Whats the deal?)
Creative 10%
(Copy & Art) Media 20%
(Sequence & Frequency)
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1.1. Targeting & SegmentationTargeting & Segmentation
= List= List
The key process is the strategic thinking
behind list selection. It may differ for each topic.
Sales Training vs. Global Marketing Trends
This process applies to everyoneindependent of product or service
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Targeting:Targeting:
Past sales predict future opportunities
New prospects or markets
Competitive opportunities
Others specific to you situation
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Targeting TipsTargeting Tips
Recent inquiries/interest may be morereflective of todays market.
Be sure that how you define the targetcan be linked to public databases.
Data description
Not all targets are created equal. Anvaluation of the targets helps set
priorities and resource allocation.
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Segmentation:Segmentation:
How Are You Getting There?How Are You Getting There? Macro segmentation -- the large groups
of targets, such as, hi-tech companies.
Micro segmentation -- clusters fordirect marketing campaigns.
One-to-one segmentation -- sales efforteither in person or on the phone. (Also
called advanced database marketing)
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Segmentation: Why do it?Segmentation: Why do it?
Relevancy of communication and offer
Tighter targeting.
Identifies that data elements for the
database.
Leads to customer focused
communications.
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Micro Segmentation;Micro Segmentation;
A DefinitionA Definition
Micro segmentation is a process of
grouping together individuals and/or
companies who share a common
characteristic(s) that are relevant to
your topic or marketing objective.
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Demographic Segmentation:Demographic Segmentation:
Facts That DescribeFacts That DescribeCompaniesCompanies
Geography: Zip, SCF, Area Code, State
SIC/NAICS
Company size: employees or revenue
Location type: headquarters, plant, etc. Fiscal Year
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Relational DemographicRelational Demographic
SegmentationSegmentation
Factual information that is linked to
your topic or product. Equipment in use
Type of technology used
Who cant think of one?
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Sales Cycle SegmentationSales Cycle Segmentation
Suspect you have a reason to believe
Inquiry they raised their hand Lead budget, need, timing and authority
First sale a customer
Repeat sales a good customer
Past customer whats wrong with them?
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List Selection:List Selection:
Five Types of ListsFive Types of Lists
Customer your internal customer file
Pooled lead all the leads you have
Developed you create the list of potential
Response people have responded/bought
Compiled their existence qualifies them
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Response ListsResponse Lists
People on these lists have donesomething Bought a product or service
Attended a seminar or trade show Subscribed to a magazine (paid or free)
Inquired or otherwise responded
Looking for affinity to your topic orproduct
SRDS book of mailing lists
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Compiled ListsCompiled Lists
Existence = list
People
Associations
Business Compilers
Info USAOmaha,NB
Experian Anaheim, CA
D & BParsippany,NJ
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The List BusinessThe List Business
Owners
Managers
Brokers
Rules of usage rental vs. full use Seeded lists you may be caught
Cost and accuracy data decay
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2.2. OffersOffers
The offer is the catalyst or motivationto respond now!
What you sell is the offering. Donot confuse the two.
Quantity vs. Quality dilemma
In general, offers are intended to movethe individual to the next stage in thebuying process.
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Offer TypesOffer Types
Inquiry generation:
Lead development:
Closing:
99 offers a list of ideas to use
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Offer DangersOffer Dangers
Neat idea but unrelated to your topic orthe clients need or interest.
Premiums
Cost for fulfillment.Internal or external
Does not move the buying processforward.
Awareness does not always equal behavior
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3. Creative3. Creative
Creative is always the subject of greatdebate and disagreement -- everyone has
an opinion as everyone is an expert!
What works in direct marketing is notalways what you think will work.
Remember that direct marketing is copydriven!
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Creative TipsCreative Tips
Take your personal opinion out of the
process to act as your own creativedirector. Use known and provenprincipals plus the eye of the beholder
Cost should not be the firstconsideration. Results, as measured ingross margin or profit terms is theguiding factor.
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Creative TipsCreative Tips
Relevancy of message and offer fightsthrough the clutter.
Remember that a flat piece of mail is
handled differently than a 3-D or
something that goes bump in the mail.
Dont try to trick the audience.
Remember, we sell people and notcompanies -- emotion works.
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Direct Mail CreativeDirect Mail Creative
GuidelinesGuidelines Direct mail is a conversation with one
person.
Design the envelop to get it opened!
Letter is the heart of yourcommunication and does the hard work.
Design the response vehicle first andthen write the letter.
Whos the hero? Offer, reader oryou?
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Seven Copy GuidelinesSeven Copy Guidelines
Feature the most important benefit nolater than in the headline, first sentence
or first paragraph.
Immediately enlarge on your mostimportantbenefit.
Identify specifically what they will get ifthey act now.
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Seven Copy GuidelinesSeven Copy Guidelines
Back up your statements with proof,endorsements or testimonials.
Call to action--
tell them what to do,when and even how .
Highlight what they might lose.
Rephrase the prominent benefits in theclosing offer.
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Direct Mail Creative TipsDirect Mail Creative Tips
Design the letter1st, 2nd and 3rd order scanable
Z path start upper left; exit lower right
Folds reader will open to widest point
Color out pulls b/w 2 to 1
Cartoons vs. picture a tough choice No more than 7 lines per paragraph
Type size should be no less than 10 point
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Creative TipsCreative Tips
Opening paragraph should have no morethat 11 17 words.
All sentences should average no more
than 14 words. In a 2-page letter, break the last sentenceinto the next page.
Quotes increase readership and interest unless they are by you.
Odd numbers are more believable thaneven
Be as specific as possible
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Creative TipsCreative Tips
Dont ever use an *
Serif type is best for letter readability
The eye goes to anything out of order
Use screen tints red and yellow arebest
After their name people read either theP.S. or response card
Avoid reverse-out type decreasereadershipby 33%
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4.Media Sequence & Frequency4.Media Sequence & Frequency
Stage of the buying process is a stronginfluence on the selection of media.
Mix it up between Internet, mail andphone.
Slow drip vs. compression.
Ask the audience how they would like tobe contacted? Permission marketing is a
powerfulboost to results.
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Mail FormatsMail Formats
Post card
Self mailer
Complex self mailer
Letter package standard
Letter package oversized
Impact mailing
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TestingTesting
The most overlooked item in direct
marketing. What to test?
How to test?
What to do with your results?
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MeasurementsMeasurements
ACTIVITY MEASURES Response % Cost per inquiry
Cost per lead
RESULTS MEASURES
Cost per sale
Breakeven Lifetime value
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The TelephoneThe Telephone
Our love/hate relationship. Cost efficient and dynamic media
Different roles
In-bound
Response media
Customer service
Out-bound
Telemarketing
Telesales
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The TelephoneThe Telephone
Its not as much a matter of knowing butdoing!
Outside service vs. internal efforts.
The people who excel at telemarketingand telesales are different.
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The Internet/WebThe Internet/Web
Common roles of web sites in a directmarketing campaign?
On line fulfillment of offer
Dialogue or other type of interaction
New technologies streaming video
E-mail is now permission based.
TouchScapes ASP solution
Combine e-visits with other media Telephone call as prospect views web site
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Final Thoughts & QuestionsFinal Thoughts & Questions
Think Different! like a direct marketer.
Its a process of doing and learning and
then doing it again but this time--better.
Lots of help -- books, magazines, andseminars. Local AZ Direct Marketing
Club.
Your feedback and questions??????