Proven DM techniques

8/8/2019 Proven DM techniques

1/35

Mastering MARMastering MAR--COMCOM

Proven Direct MarketingProven Direct MarketingTechniquesTechniques

March 29, 2001March 29, 2001

JOHN M. COE

DATABASE MARKETING ASSOCIATESSCOTTSDALE, AZ

480-778-9900


2/35

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)


3/35

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


4/35

Targeting:Targeting:

Past sales predict future opportunities

New prospects or markets

Competitive opportunities

Others specific to you situation


5/35

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.


6/35

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)


7/35

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.


8/35

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.


9/35

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


10/35

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?


11/35

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?


12/35

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


13/35

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


14/35

Compiled ListsCompiled Lists

Existence = list

People

Associations

Business Compilers

Info USAOmaha,NB

Experian Anaheim, CA

D & BParsippany,NJ


15/35

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


16/35

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.


17/35

Offer TypesOffer Types

Inquiry generation:

Lead development:

Closing:

99 offers a list of ideas to use


18/35

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


19/35

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!


20/35

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.


21/35


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.


22/35

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?


23/35

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.


24/35

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.


25/35

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


26/35


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


27/35


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%


28/35

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.


29/35

Mail FormatsMail Formats

Post card

Self mailer

Complex self mailer

Letter package standard

Letter package oversized

Impact mailing


30/35

TestingTesting

The most overlooked item in direct

marketing. What to test?

How to test?

What to do with your results?


31/35

MeasurementsMeasurements

ACTIVITY MEASURES Response % Cost per inquiry

Cost per lead

RESULTS MEASURES

Cost per sale

Breakeven Lifetime value


32/35

The TelephoneThe Telephone

Our love/hate relationship. Cost efficient and dynamic media

Different roles

In-bound

Response media

Customer service

Out-bound

Telemarketing

Telesales


33/35

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.


34/35

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


35/35

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??????

Proven DM techniques

Documents

Transcript of Proven DM techniques