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Long-term Relationships with DM

Week 8 Already?. Long-term Relationships with DM. Another Humber Exclusive . Long-term relationships with DM. Start relationship and cross- sell: 80/20 Rule 80% of your business comes from 20% of your customers. Corollary: it costs 4X as much to acquire a customer than to keep her

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Long-term Relationships with DM

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  1. Week 8 Already? Long-term Relationships with DM Another Humber Exclusive

  2. Long-term relationships with DM • Start relationship and cross-sell: 80/20 Rule • 80% of your business comes from 20% of your customers. Corollary: it costs 4X as much to acquire a customer than to keep her • Marketers use DM, whether that’s the mail or online, to milk the cow.

  3. Long-term relationships with DM • Start relationship and cross-sell: 80/20 Rule A case study: President’s Choice Financial NB: Why does DR exist? (HINT: Think of capitalism)

  4. Long-term relationships with DM • Start relationship and cross-sell: 80/20 Rule i.e. PCF acquisition. They could raise their hand but client needed signature to begin banking relationship (lousy bank act). First they got this piece in the mail, but then they got a Welcome Package asking for their signature. NB: Why does DR exist? (HINT: Think of capitalism)

  5. Long-term relationships with DM • Purpose of DM • Primary: To sell. • Specifically DM: Deliver best ROI without sales staff. • NB: If you do something wacky with your advertising message, that investment needs to pay off to justify the expense. • Lesson: Gimmicks are expensive. Make them pay. i.e. If you’re putting a die-cut in your Bagel King loyalty card, it needs to pick up the $1000 more worth of business to cover the investment. It should work because a hole in a card is unusual looking. (Again, capitalism: you gotta spend money to make money.)

  6. Long-term relationships with DM • Start relationship and cross-sell  i.e. PCF acquisition. The could raise their hand but client needed signature (lousy bank act) SO – SECOND MAILING WAS A WELCOME PACKAGE THAT NEEDED THEIR JOHN HENRY. • First promo house didn’t understand DM. $11 per package with 7 elements. LRMP brought price down to under $4 and raised response by over 30% • LESSON? Get direct marketers to do your direct marketing.

  7. Long-term relationships with DM President’s Choice Financial ‘Learn & Earns’ #1 – “If you get their paycheque, you got ‘em.” Hence, this first DM. (Forgive the instructor: his scanner’s dead.) Guess the specs!

  8. Long-term relationships with DM #1 Learn & Earn unfolded (Paycheque)

  9. Long-term relationships with DM President’s Choice Financial ‘Learn & Earns’ Think back to the previous slide. What was the call to action? (Hint: cursed bank act.)

  10. Long-term relationships with DM President’s Choice Financial ‘Learn & Earns’ #2 – LOC product: “borrowing account” (oh, that lower case thing.)

  11. Long-term relationships with DM President’s Choice Financial ‘Learn & Earns’ #2 – LOC product: “borrowing account” unfolded

  12. Long-term relationships with DM President’s Choice Financial ‘Learn & Earns’ #3 – RSP product: “World’s Best RRSP” (And then they killed the product line.)

  13. Long-term relationships with DM Read the masthead again. The big differences between direct response advertising and general advertising? • Measurability versus ‘man, I hope this works’ • Proven data helps ensure you know your target far better vs. see 1 • Results justify the costs vs. see 1 • Advertising wants to change how you think. Response wants to change how you act • See next slide

  14. Long-term relationships with DM Read the masthead again. The biggest unrealized difference between direct response advertising and general advertising? Advertising seeks your attention. Direct response seeks to keep it. For next week: Bring in 2 samples of direct marketing: a 1-off and a relationship-builder. (If it’s email, print it.)

  15. Long-term relationships with DM In-class assignment. Research and write a 5-paragraph letter to a Rogers Cable subscriber, encouraging them to get Rogers Home Phone. Advantages? 10% extra off price because you’re already a Rogers customer. AIDA? What would you do during “I” to make it more interesting/engaging? Offer? A free Casio wireless phone with power base. C2A: Call 1800-Rogers1. At 5 minutes before end of class, read it to your friend and vice versa. Each of you must find 3 things to improve on the other’s letter.

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