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Week 4

Week 4. Integrated Direct Marketing. IDM Media Mix Includes. Public Relations Internet and e-mail Direct Response Print Advertising Direct Mail Inbound and Outbound Telecontact Field Sales Channels Consensual Databases . The Goal. The goal of this process is simple

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Week 4

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  1. Week 4 Integrated Direct Marketing

  2. IDM Media Mix Includes • Public Relations • Internet and e-mail • Direct Response Print Advertising • Direct Mail • Inbound and Outbound Telecontact • Field Sales Channels • Consensual Databases

  3. The Goal • The goal of this process is simple • Significant increases in qualified response • Increased profit • Reduced waste through precision deployment of relevant and targeted communications.

  4. IDM, A Definition • Pre-Sale • Begins with integrated media and sales strategies. • To determine the needs, interests and preferences. • Sale • Ever increasing focus on customers requirements • Ongoing communications • Consultative needs assessment • Problem identification and resolution • Generation of repeat sales

  5. Traditional Results • 2% YES98% NO • This applies to e as well A 2 % response may mean we are making money. But 98% of our market trashed our communication. This message is very clear. We must refocus our efforts to communicate greater relevance and deliver greater value. Information is the enabler; it is the tool we need to achieve double-digit response and leverage LTV of a customer.

  6. Traditional MarketingA 2% Solution 2% YES 98% NO

  7. The Goal of Traditional Direct Marketing Quick Sale Not Long-Term Relationship

  8. Considerations • The evolution of American business has caused organizations to become series of Silos • Management criteria and agendas vary from silo to silo.Only a few silos are focused on the customer. • Silos, • Inhibit integration • Preclude a company-wide focus on the customer.

  9. Silos • Inhibit Integration • Preclude a company-wide focus on the customer • Organization along product lines precludes a true customer focus • Lack of processes to understand and address customer needs.

  10. Integrated Direct Marketing provides a strategic and tactical process for managing customer driven communications. It is a way to focus sales and marketing on building strong, lasting relationships with customers. • Al Ries

  11. IDM is practical,there are barriers: • The first barrier is perceptual • Just adding multiple media won’t make your campaign integrated • IDM is a customer driven process that is based on research precision and analysis.

  12. Organizational • Second barrier is organizational • It exists among disciplines such as marketing, sales and advertising, that value their turf and are not used to working cooperatively. • To integrate your direct marketing, you have to integrate your organization.

  13. Implementation • Third barrier is implementation • Media and messages must be integrated and managed so your company speaks with one voice – carrying a message of value, as defined by the customer

  14. Make&Sell v.s. Listen&Serve • The focus on the customer must be the driving force • We must compel ourselves to abandon the “make and sell” manufacturing mind set which has devastated the effectiveness of most marketers. • Instead we must rapidly evolve to the customer based commitment of “listen and serve.”

  15. Identify Marketing and Sales Efforts Over 1000 hours of Voice of Customer(VOC) research confirms that • Customers and prospects are tired of receiving the traditional barrage of untargeted, • Unfocused and Unsolicited • Mailings, • Emails, • Phone calls, etc.

  16. Voice Of Customers • Customers are increasingly opting-out • No Value! • Name removal growing at 600% per year for some companies! • Customers finding no value in the communication No RELATIONSHIP PROCESS • Opt-out rate can exceed sales rate

  17. Voice of Customers • Almost 1000 hours of research on behalf of clients including • IBM, Agilent Technologies Inc., Applied Biosystems, AT&T, Citibank, • Goal: To better understand the messaging and communication requirements of customers!

  18. VOC Research Quotes • “The fastest way to be forgotten is to buy” • Where is the “Thank you” message? • If you only knock the door to sell, you will lose.

  19. VOC Research Quotes • “You flood me with mail, instead of taking the time to understand what information you should be sending.” • “What is the value of your communications? I get about one garbage can a day of unsolicited, irrelevant information”

  20. How To’s • Allow customers to participate in a dialogue and populate your database with their • Information needs • Timing requirements • Contact information • Media Preferences

  21. “The consensual process throws out old assumptions, takes a market and breaks it down to the individual level….With this customer generated intelligence, there is no longer a need to blanket a market with mass media” • Brian Gillespie, former VP, ITT Sheraton Reservations Corporation

  22. Investment Triangles (Important) IDM, with the consensual Database, drives the allocation of resources per propensity to buy Marketing Investment Top Producing Customers Good Customers Dormant Customers &Qualified Prospects Suspects Market Segmentation

  23. IDM Media Contribution

  24. Internet&Email

  25. Internet and Email • 76% of web sites fail to meet basic requirements for a good customer experience ( Forrester Research) • 17% of sites had comprehensive CS • 7% of sites had precise and comprehensive keyword searches • 87% didn’t provide essential information at each user decision point

  26. Internet & Email • Only 2% of those who visit a site actually make a purchase (Net effect) • In spite of marketplace perceptions of the web (e-channel) as a dominant customer contact point,traditional selling channels such as face to face selling, business partners and telechannels continue to account for more than 95% of revenues (meta group / IMT)

  27. Internet & Email • Regarding consumers who categorize themselves as online users: of the holiday season, • 26 % of internet users budget was spent online. • 60% was spent in traditional bricks and mortar stores. (PriceWaterhouseCoopers)

  28. Internet & Email • Websites and e-communications are more effective in customer retention and for prospecting.

  29. Internet & Email • Response will vary by message sent • Per e-Marketer retention messages are read almost twice as frequently as acquisition messages

  30. VOC • “Keep it easy, interactive and visual” • “If we request in-depth information, it is OK to ask for information in return” • “Please answer our email promptly” • Expected response within 24 hours

  31. The e-mailbox is “private property” • Perception of unsolicited emails may cause severe reactions. • Example ACE computer camp • Computer programming and gaming camp for kids • Sent out a notice about upcoming summer camp to a rented list • A handful of complaints caused them to be branded “Spammer”

  32. How To’s • Define your target audience • Why and when do customers want to visit your web site • Why and when do customers want email • Email for specific information interchange • Web sites for research and easy purchase • Provide options that include knowledgeable empowered real time human interaction

  33. Internet & Email • Map your customers’ needs • Which needs can be fulfilled by which channel • Web sites for research • Direct mail for in depth information • Inbound calls for complex orders and customer service • Don’t force customers for the low cost process

  34. Internet & Email • Incorporate electronic data capture • Ask for profiling information as appropriate • Don’t request detailed personal information on the “first date” • Learn something new with each exchange value • Track web behavior to identify • Important information • Deletions / Areas to develop

  35. Your Investment • Carefully consider your investment in e-media • Expect limited payback from your investment in internet content (Jupiter research) • Carefully consider the offers you extend via e-media • Discounting will • Commoditize your product • Increase customers’ expectations that e-media = lower prices

  36. Internet & Email • E-chat • Requires a specialized skill set • “Call me” button • Customers expect prompt response • Careful- some consumers only have one telephone line and may be online • 800# promote the value of the Inbound channel

  37. Direct Mail

  38. Direct Mail • Per VOC Research, most customers prefer to get in-depth information via Direct Mail • A medium to communicate value • Not junk mail • However that is not the way marketers appear to be deploying this medium

  39. VOC quotes • “Value? One garbage can per day – 2 feet by 16 inches” • “You are using me as an executive mail room”

  40. VOC quotes • 75% of those interviewed preferred to receive in depth information via direct mail • “Email maybe the base of your communications with me, but I am getting too much junk. If it is really important send it to me by mail.” • “Mail should be specific to my role what I do all day long.”

  41. VOC quotes • “If I request information, I’d rather you send it to me by mail versus a decades-long download. Mail is easier to access, easier to read.” • “A personal invitation goes right to the top of my inbox.” • “As I sort mail, I look at the corner card ( Who is this from) and the class of mail. If I recognize the company/if we have a relationship, and if it’s sent first class I’ll open it every time.”

  42. Effectiveness of Direct Mail • To increase the effectiveness of direct mail • Spell your customers name correctly • Most frequent error • Undermines dialogue

  43. Effectiveness of Direct Mail • Personalize the message • Per immediate needs of the customer; • “The attached article details independent testing that shows the benefit of on site training.Per our conversation regarding leadership training, you will find quantitative results on page 2 paragraph 2” • Per the relationship with the customer • “We appreciate the opportunity to provide our customers with regular updates regarding important issues”

  44. Important Questions • Copy and design must clearly answer these four questions • What is the topic? • What do you want me to do? • When do you want me to do it? • What is in it for me? • A strong and visible call to action is essential 1 800 number

  45. Direct Mail • Introduce the value of the website • Why should you go to the web site • Information • Track a shipment • Emphasize the benefit of Inbound • Speak to trained knowledgeable, empowered product advisors who can answer your questions and expedite order.

  46. Create Springboard for Outbound • Introduce the value of the outbound touch • “Your tax advisor John Smith will be calling you later this week to discuss this new legislation, and how it will specifically apply to your portfolio”

  47. Timing= One week after Print Ad • Mail should be deployed approximately one week after direct response print advertising

  48. Tips: How to increase Direct Mail response by 15% or more • Personalize the communication • Mail First Class • Additional cost equals additional results • Testing has shown that the additional cost of first class is more than offset by the increase in qualified response

  49. Tip: Don’t release all the mail at once • Stagger the mail to: • Load level inbound call volumes • Ensure timely outbound follow up • Release mail in “Waves” • Sized per telemarketing capacity Wave I Wave II Wave III

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