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– Significant increases in qualified response– Increased profit– Reduced waste through precision deployment

of relevant and targeted communications.

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

Traditional Results

• 2% YES98% NO

• This applies to e as wellA 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.

Traditional MarketingA 2% Solution

YES

NO

2%

98%

The Goal of Traditional Direct Marketing

Quick Sale

Not

Long-Term Relationship

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.

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.

• 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

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.

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.

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

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.”

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.

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

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!

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.

• “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”

VOC Research Quotes

How To’s

• Allow customers to participate in a dialogue and populate your database with their– Information needs– Timing requirements– Contact information– Media Preferences

• “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

Investment Triangles (Important)

Market Segmentation

Marketing InvestmentTop Producing

Customers

Good Customers

Dormant Customers&Qualified Prospects

Suspects

IDM, with the consensual Database, drives the allocation of resources per propensity to buy

IDM Media Contribution

0

10

20

30

40

50

60

Print Advertising Internet Mail Telemarketing

Percentages

Internet&Email

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

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)

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)

Internet & Email

• Websites and e-communications are more effective in customer retention and for prospecting.

Internet & Email

• Response will vary by message sent– Per e-Marketer retention messages are read

almost twice as frequently as acquisition messages

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

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”

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

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

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

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

• 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

Internet & Email

Direct Mail

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

VOC quotes

• “Value? One garbage can per day – 2 feet by 16 inches”

• “You are using me as an executive mail room”

• 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.”

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.”

VOC quotes

Effectiveness of Direct Mail

• To increase the effectiveness of direct mail – Spell your customers name correctly

• Most frequent error

• Undermines dialogue

• 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”

Effectiveness of Direct Mail

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

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.

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”

Timing= One week after Print Ad

• Mail should be deployed approximately

one week after direct response print advertising

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

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

Points to Remember

• Integrate mail with other media– Timing– Message– Call to action

• Personalize the communication– To the individual (spell their name correctly) – To the relationship– To the individuals needs and requirements

Inbound and OutboundTelemarketing

Inbound Call Center

• Customers place inbound calls for a specific purpose– To inquire– To make a purchase– To resolve an issue

Inbound Call Center

• However, what they frequently encounter are the human robots– Reactive/ Transactional Reps who do not:

• Communicate value• Satisfy customers• Increase revenue• Contribute to the brand

– What do your customers experience when they call your 800# ?

Considerations

• Marketing expenditures on mail and other media cause the phone to ring– What is the cost of an inbound call

• $50 - $250

• What are your costs?

Customers want to speak to a live person

• Someone who represents the company well

• Immediate gratification

• Extremely low customer expectations

• Customers have become accustomed to poor service.

• Inbound, carefully integrated into the media mix, can generate a 50%-100% increase in qualified response

• Visible integration of 800 # into all – Publicity– Advertising– Mail– InternetMail Only

2% Response

800# 50-100% Increase

Inbound Integration

Outbound Telemarketing

• Issue:– Outbound telemarketing

• Most powerful medium for response, leads and sales

• Most powerful medium for dissatisfaction

Bad Reputation

• Outbound, as an industry, has been successful in giving itself a black eye– The calls we receive at dinner

Voice of Customer

• Extremely low customer expectation• Per VOC research

– Irrelevant. Unstructured. Offensive– You are not listening. Cold calling is not

appreciated– “Telemarketing is intrusive. If I am interested I

will call you”– How much of a relationship do you feel with

the folks who call during the dinner

Outbound Telemarketing

• Integrate and synchronize outbound with other media and messages

• Deploy integrated telesales– Market justified– Interactive dialogue not broadcast!– High quality = higher revenue

Outbound Telemarketing

• Control the call.

• Quickly answer the spoken question, ‘What is in it for me?”.

• Probe for the clear statements of need.

• Present the solution with features and benefits.

The Script

• Meet objections with benefit and value– The four types of objections

• No need

• No money

• No confidence ( in your company,

product or service)

• No hurry to purchase

The Script has to address

Scripting

• Effectively respond to objections– Develop and continuously refine scripting

• Every 3-4 weeks the scripting has to change. If not you are in trouble.

• Up-sell cross-sell whenever possible– As appropriate develop an Affinity Matrix to

help Reps match solutions to needs.

Pho

ne

Pho

ne

Mail

Traditional Mail&Phone

Time

Res

pons

e

Response Compression

24-72 hours

Mail

The Principles of Response Compression

Mail Only

800 #

Outbound

2%

50-100%

500% Total Increase 600%

•Mail is more productive•Telemarketing is more profitable•Multiple messages via different channels•Will increase sales

Direct Response Print Advertising

Direct Response Print Advertising

• Two major uses for direct response PA– To provide a specific umbrella

of awareness in support of email, internet, direct mail and telemarketing

– To demonstrate commitment to a specific marketplace

• “If wee see your ad in the publications we mentioned, we know you are dedicated and will stay committed”

• http://www.admedic.com/html/ad_samples.html#

How To’s

• Deploy direct response Print Ads– Must generate some degree of response– Awareness is most clearly measured by response

• Create awareness in support of email, internet, direct mail and telemarketing– Introduce clear benefits and visuals– Include a strong call to action– Provide multiple response options with benefits for choosing

each• Internet: Research / Ordering• Inbound : Talk with an experienced product Advisor• Suggestion: Drive response to interactive inbound channel to enable

up-selling / cross selling / database building

Use VOC research to determine

• What publications do you read regularly for this information?

• In which of these should we advertise?

• What information should the ad contain?

• What visuals would you want to see?

• What offer do you find compelling?

Considerations

• Trade shows attendance is very expensive

• Given the noise trade shows are inefficient in generating high quality leads.

7 Step IDM Registration Generation Process

1. 5 Weeks prior……………………

2. 4 Weeks prior……………………

3. 3.5 Weeks (24-72 hrs. after mail)..

4. 2.5 Weeks………………………..

5. 1 Week prior……………………..

6. 3 Days & 24 Hours Prior………...

7. 1 Week After…………………….

Print Advertising

Initial Direct Mail

Outbound Telemarketing

Confirmation Letter / Email

Briefing Package

Confirmation Call #1 #2

Follow up communication

Field Sales

Integrating Field Sales

• Issue:– Marketing+Sales= dysfunctional relationship

• Different measurements for success– Marketing success is measured by gross number of

inquiries / leads.

– Sales success measured by revenue.

Sales Integration

• Process review with field Sales

• Create inside sales and telemarketing function

• Send fewer, higher quality leads to the field.

• Set up feedback loop.

Public Relations

• PR / Publicity– Can generate the

• Highest quality leads

• Highest average order

– Is generally left out of the direct marketing media Marketing Mix

Considerations

• There is no stronger form of awareness– Implied endorsement of the publication– Verisimilitude

Publicity

• However there is a long lead time– Ideas must be submitted 3 months prior to

publication– No guarantee when, or if your story will run

• Final story may not match your idea– Editorial process may shift focus from your

intention

How To’s• Target publications per the profile of your customer base

– Customer vertical versus general publications– As possible, use VOC research

• Generate newsworthy ideas– What are the needs and requirements of your target market– How do the benefits of your product / Service address those

needs– Do not sound over promotional / concentrate on customer

benefits.– Your idea should show how customers can get access to these

benefits through your web site / 800#.

Publicity

• Persistence– Personal relationships make the difference– Identify the appropriate writers / editors– Follow up by phone

• Don’t mail ore releases than you can follow up per response compression

• Script your phone calls / messages to ensure value

– Use prints as a component of fulfillment

• Publicity

• Website

• PA

• Email Newsletter

• Catalog

• Direct Mail

• Telemarketing

Months

IDM Contact Management Calendar

1 2 3 4 5 6 7 8 9 10 11 12

1 2 3 4 5 6 7 8 9 10 11 12