Allegra Marketing • Print • Mail Blog

Too Much Choice Done Right

How many times have you been to the store and found there was too much choice? I see this all the time at the supermarket. There are 50 kinds of toothpaste. 100 kinds of snack foods. 150 different soft drink variants. All sitting on the shelf for my buying pleasure. I really don't like going to the supermarket. I just want to get the thing I came in for and get out, but how do you do that with so many products in a category you came in to buy? When I go into a fast food place, I see at least half a dozen choices for drinks, most of which are not something I want. 

Last week, I was in Pei Wei, and I saw Coca-Cola and Pei Wei had at least a partial solution. They had a coke machine that had to have several hundred choices. It was arranged in a touch screen, with 22 choices at the top level - still a lot, and more choices below. At the top level, you could decide on coke, diet coke, root beer, water, lemonade, Hi C, Sprite, etc. When you went down a level, you had all the variations - caffeine free, cherry flavoring, vanilla flavoring, etc. In some ways, this is like the old soda fountain when they made it more or less your way.

This Coca-Cola Freestyle machine fulfills two marketing needs

1. It allows the customer to have it his or her way. Want Diet Coke with Vanilla flavoring? OK. How about Dasani Water? You can have that too. Everyone has their own choice, and this machine will give it to them - in over 100 ways.
2. The Freestyle machine makes the choice simple enough that the average user won't get decision anxiety - at least not if they have a preference.

The next time you need to present a complex set of choices to customers, think about the Freestyle machine.

Six Marketing Tactics Targeting Current Customers

To do your marketing right, you first need to ensure that you have set marketing objectives that support your business goals, and then you need to choose tactics that support the objectives. Generally, to help the top line, you will either be working to get more from your customer base, or you will be working to add new customers, or both. This article covers some popular tactics targeting current customers.

1. Email marketing. Email marketing is an inexpensive way to keep in touch with your customer base. You can send information and offers to customers via email, you just need to be careful to comply with the CAN SPAM act. Email provides a rich medium that can include video, links to web sites, graphics, and text. With email, you can create an attractive and interactive marketing piece, and you can personalize it. Within the bounds of CAN SPAM, you control who will receive your email. As with all marketing, you cannot control who will actually read it.
2. Social Media. While social media ins't really free, there is currently no charge for using it, but time and effort (which equals money) is required. Social media provides a dynamic and interactive way to connect with your customer base. To reach your audience on social media, however, they need to specifically connect to you (friend, follow, like, etc).
3. Broadcast Advertising. Broadcast advertising can reach both your existing and potential customers. Depending on your market, it can also be very expensive. With proper placement, you will reach your target market.
4. Print Ads. Print ads, properly placed, will reach your target audience. To make print ads work well, you need to either have a very broad target audience, or to find a publication that serves your audience. One nice side effect of print ads is that the publication may include exposure on their web site as part of the ad or for a small increment above the price of a print ad.
5. Content creation (inbound marketing, web marketing, SEO). When you create new content on the internet, you may be able to get your customer base to come regularly to see your killer content, or to subscribe to your RSS feed. Content creation also can help you rank higher in search engines, helping you find new customers.
6. Direct Mail. With direct mail, you can easily target you customer base with information and offers. You can personalize the pieces and integrate them with your internet marketing for more response. With direct mail, you don't need to worry about SPAM filters, and the USPS provides a database that can be used to update your list as people move.

There are many tactics for reaching your customer base. Used well with an eye to ROI, you won't go really wrong with any of them.

How to Do Small Business and Non-profit Marketing Right

In a sentence, to do marketing "right" make a plan and work the plan. There are differences in business to business, business to consumer, and non-profit marketing, but the basic principles are the same - make a plan and work the plan. In the advanced version, working the plan includes measuring the results and adjusting the plan based on the relults. So, how do you make a marketing plan?

1. Determine the objectives. Normally, marketing objectives are derived from general business objectives. Say the business wants to grow sales by $100,000/yr. You know from experience that say 10% of your leads, or 10% of people coming into your store, or 10% of your website visitors buy, and that on the average each sale is worth $500. $100,000 in annual sales requires 200 sales at $500/sale. If 10% buy, you would need to generate 2000 additional leads, 2000 additional visitors, or 2000 more people in retail traffic to reach the goal. Of course, increasing the average sale amount would be another way to reach the goal.
2. Understand your target market. You need to understand the value of your product and offers to the target market. You need to understand where to find the members of your target market. You need to understand the demographics of the target market. The persona approach described in "Waiting for your Cat to Bark" by Eisenberg and Eisenberg provides a good approach to describing and understand the target market in a way that you can easily discuss and use the information.
3. Determine your budget. Five to Seven percent of sales is a normal guideline, but you may need to spend more or less. Knowing the budget helps narrow the tactics. For example, if the budget is $10,000 and the proposed approach is a nationwide television campaign costing $1,000,000, you know you need to keep looking or make a case to increase the budget.
4. Develop the tactics. Will you use email marketing?, Television?, Direct Mail?, Inbound tactics on your web site?, or something else? Will you execute it inside or go outside for expertise?
5. Develop the measuerment techniques. Often the details of the plan will depend on how the results are to be measured. You may need special landing pages on your website. You may need a distinct telephone number so you can measure how many calls came in. You may need to train retail store clerks to ask how someone found you or to validate coupons. In any case, you need to define the measurements up front.

Once the plan is in place, execute the plan and take the measurements. Use the data to see what is working and what isn't, and adjust the plan as necessary.

Using Networking to Support Sales and Marketing

There are many networking opportunities in business, and they can support a company's sales and marketing effort. Networking includes specialized networking groups, chamber of commerce activities, networking events, parents at kid's sports events, golf leagues, and any other place where business professionals might meet.

In my experience, most forms of networking don't directly lead to business. Networking can help you get contacts names for your sales and marketing efforts, and it can help you got an initial appointment, but you still need to sell your product.

At networking groups and events, you can meet people, start qualifying, and get referrals. Often, you can work the room, meeting people and setting appointments with those you think can help you and those you think you can help. It has to be a two way street. In less formal networking enviroments such as soccer teams, ski clubs, and book clubs, you can't work it the same way. You can let people kno what you do, and , as you get to know people, you can try to set up an appointment with someone where it makes sense.

Networking can also happen in business groups nad user groups. Often, people with leadership positions in such groups can be very visible. They also frequently have speakers who get a lot if visibility and can make contact with the people who ask questions after the talk.

Networking can be a valuable way to find new contacts who might be interested in what you do. Take advantage of these opportunities and grow your business.

 

Marketing Support Software Evaluation

There are many types of marketing support software - Email marketing support, customer relationship management, SEO, integrated marketing suites, project management, graphics programs, etc. For many categories, there are a number of viable choices. Other than comparing feature lists, how do you select the right software?

If possible, got an evaluation copy of the software. Many software as a service (SAAS) companies have a free period or a free plan, as do some packaged software compaines. This allows you to look at the software and do your own evaluation. Take advantage of free trials. Actually getting hands on with the software gives the best data.

When evaluating software consider:

• Does it have the features you need, and that you are likely to need in the next few years?
• Is it compatible with software others use (when necessary). For example, with graphics software, you are likely to be sharing files with outside organizations. You will need to either use the same software or something that allows conversions.
• If you are currently using software in the category, can you migrate your data to the new software? If not, what will it take to restart with the new software.
• Is it easy to use? As an example, 37 Signals BaseCamp is a very easy to use project management tool without a lot of features. Microsoft project is a very complete project management tool, but it is much harder to use. If you find the software too difficult, you won't actually use it. Remember, the success of Apple's mobile products can be largely attributed to ease of use.
• Does it fit into you infrastructure. Some software runs on many platforms. Some only runs on Windows. Some won't run on Windows, or runs poorly on Windows. If you need to buy a new server to run the software, you may have problems with the capability of your IT support people and you will have added cost. If everything is good with hardware, does the new software work with your other software? For example, if you use quickbooks, can the software send accounting data automatically to quickbooks?
• Be sure the software runs fast enough on your hardware. Slow and unresponsive software can be painful to use.
• If there are regulatory constraints, does the software support them? For example, does email marketing software support compliance with the CAN SPAM law?
• Does the software have adequate customization and automation features. Sometimes the ability to have marcos and customize the program can significantly improve productivity.

When evaluating software, try to get a trial and check out the criteria in the list to choose the best product for your needs.

Your Marketing and the Media

Would you like to be featured in the media? Just think about the marketing value of a front page news article. And think about the damage that can be caused by a bad article. Unfortunately, you can't control what is written about you or your business. It is possible, however, to get the word out where the media can see it and perhaps write about you.

The major job of a Public Relations (PR) person or agency is to help you tell your story and get the media to pick it up. One time honored technique is the press release. Today, ne of the ways press releases are distributed is through the internet on sites like PR Newswire. The primary objective of a press release is to have the media pick up your story and run with it. Large media outlets will generally write their own story based on information from your organization and from any other source they might find. Sometimes trade journals will pretty much publish your press release as written.

Press releases on web sites can also have a search engine optimization value. A press release usually will come with links to your site. Particularly if these links are from a PR site, they are links that will be seen by the search engines. The press releases itself may also show up in search engine results and allow someone to find you. If you can get a link from a respected media site because they wrote an article, you have mined some Google Gold.

Outside of traditional PR activities, the media might find you through word of mouth. If a reporter or blogger hears about you from friends or on social media, you might get some interest and a story. Of course, it helps if someone in your network is connected to members of the media and bloggers.

Do You Have More Time or Money for Your Marketing

Marketing - you have to do it. You may not like it. You may not understand it, but you have to do it. So, the next question is whether you have more time or more money for marketing?

If you have the skills, you can do your marketing yourself - assuming that you have the time. If you don't have the time or the skill, then you will need to spend the money to find someone to work on your marketing. You could choose to hire a marketing person for your organization, which is fine if you have the work to keep a person busy, and if you can find a person with all the skills needed to plan and execute your plan. Of course, with an in house marketing person, you have complete control of the marketing person's work time.

Thte alternative to hiring a marketing person for your organization is to hire an agency to support your marketing efforts. With an agency, you get a variety of skills, and you can contract for the amount of work you need, even if it is less than a full person.

The marketing must be done. You might decide for a do it yourself approach, particularly if you have some marketing skill nad your aren't particularly busy. Otherwise you will need to pay someone else to take care of your marketing. You can go in house, or hire an agency to handle your marketing.

How Many Times Should I Direct Mail (or Email) My Marketing List

In a word, yes. If the recipients don't know you, definitely. The collected wisdom in the industry is that you will get the most response on the first mailing, less on the second, and so on. Then how many times should you mail? It depends. The best way to find the answer is to test and measure. For your next couple of campaigns plan to mail three times. Measure the response from the first mailing to the list, the second mailing, and the third mailing. If you still have strong ROI, consider more mailings. If ROI is dropping, stop mailing. Certainly you should skip the third mailing if the second one doesn't do well.

Why mail more than once? There are several reasons.

1. At any given time, only a part of your list will be interested in your offer. The set of those who are interested will change over time. Think about it. Today you are happy with your TV. Next week or next month, it may act up and need to be replaced. Those who were interested earlier have either bought or decided not to buy. If you mail more than once, you will have a better chance of finding more recipients who are "in the market".
2. Repetition makes an impression. When you receive a mail, you may not be "in the market". But it may make you think. The next time, or the time after that, you might be moved to act even if there isn't anything to force a change.
3. The probability of response declines over time from when a marketing piece is received. If you get an email with an interesting offer but you don't have time to respond quickly you may forget. When you receive another offer for the same thing, you will probably still be interested and will respond.
4. Variations in the offer or creative may reach someone who had not been interested earlier.

The next time you start a direct mail or email campaign, consider testing the number of "touches" necessary to get the best overall return on investment.

What Makes a Profitable Direct Marketing Campaign

Face it, it is very easy to create a direct marketing campaign. Creating a profitable direct marketing campaign is the thing that is hard. The profitability of a campaign is determined largely by the cost per lead generated. Depending on what you are selling, each lead may mean actual sale, or for more complex sales, someone in your sales force may need to close the sale. In either case, a certain percentage of leads turn into sales, and on the average each sale is worth a certain amount. Using these figures, it is easy to determine how much revenue each lead is worth, on the average.

Once you know the average value of a lead, you can compare it to the average cost of a lead. If a lead costs more than it returns, the campaign is not going to be profitable. 

So how do you know the cost of a lead, especially before the campaign rolls out? The first thing is to estimate the response rate. If you have used similar campaings assuming a similar response rate. If you have no idea, you should guess the response rate will be 0.5% to 1%. This assumes you have a good list, offer, and creative. Knowing the cost of the campaign, the number of people who will receive the campaign, and the response rate, you can compute the cost per lead.

So when is a campaign likely to work? The first case is where the value of a sale is high. The cost per lead is much less important for a $5000 sale than for a $5 sale. A campaign with low costs can also work well, as the cost per lead will also be low. A final place that can work well is a campaign where a very large numbers of people will be exposed to the campaign without a very high cost. When many thousands of people are exposed to your campaign, you don't need a big response rate to make money.

On the other hand, what won't work. Any campaign requiring a high response rate probably won't make money. Don't fool yourself into launching a campaign needing a 10% or higher response rate. Unless everything is exceptional, it won't happen. In fact, a 5% response rate is rare, espcially for customer acquisition.

When launching a direct marketing campaign, with mail, email, TV, radio, or the internet, or print ad, do the numbers and make sure things work before you start.

 

How to Improve ROI Using Your House Mailing List

Last week, I wrote about choosing a mailing list, primarily a list from an outside source. If you want to mail from your house list, the list of customers, supporters, and prospects maintained by your organization, what can be done to increase the cost effectiveness of your direct mail campaigns?

The first, and the most important, action to take is to ensure the mail is relevant to your target audience. Not just part of the audience, but to as much of it as possible. That means understanding the characteristics of the people on your list and picking creative and an offer that will be of interest to everyone.

If your audience is heterogeneous, this is really easy. Since everyone has the same characteristics, at least in relation to the action you want them to take, a single offer and a single creative concept will work for your entire audience. If there are significant differences between the members of your audience, you will need to divide them into two or more segments and handle each segment differently.

As an example, consider a dry cleaner that wants to generate immediate business. If the offer is a discount on dry cleaning, there probably isn't any need to segment the list. Everyone on your list uses dry cleaning. On the other hand, if your offer is a discount on shirt cleaning, you might want to segment the list as probably only a subset of your list has shirts cleaned.

If you decide to segment your list, what can you do with the different segments? One obvious possibility is to only mail certain segments of your list. This will reduce your printing and mailing costs for direct mail, and not make parts of your list think you are sending them junk mail or SPAM because the mail is not relevant to them. When you want to push a specific product or service, this can be a really good choice. Another option is to use the personalization features of an email provider, or variable data printing. This way, you can send different offers and creative to each segment.

The next question is how to segment the list. One good approach is to use statistical methods. Most statistical methods require a fairly large database, larger than what the typical small business has. So, when statistical methods aren't appropriate, what can be done? Often, when an organization has a decent database and the data can be extracted, some qualititive analysis can be done. A spreadsheet is a common tool for this analysis. Bring the data into your favorite spreadsheet (or database or statistical program) and take a look at it. Sort and summarize in various ways. Chart the data. A lot of times, a segmentation will emerge. in fact, this sort of qualitative look at the data is often the first step for a statisitcal analyst.

If you segment your house list, you can improve the response rate by mailing only to that part of the list to whom the offer and creative are likely to be interesting, or by mailing multiple offers and creative content, which should lead to a higher response rate and ultimately better ROI.