Marketing’s Dirty Little Secret

Studies indicate that only 58 % of direct marketing campaigns are deemed effective. That means that in four cases out of ten, the operation or campaign has no significant effect on the brand’s market share or sales.

Considering that many of these campaigns are extremely costly, should we tolerate such blatant wastefulness in these tough times?

What to do?

For some background, below we have an excerpt from an insightful article reminding us on how we market today, what’s going horribly wrong, and ideas on how to fix it.

“… This ‘one-size-fits-all’ approach to marketing is so antiquated, so primitive, and generally so ineffective that when you add it up, it costs every company that employs it between $600 and $1,500 to generate a sales lead…

Americans are assaulted over 4,000 times a day by media messages (that figure varies upward depending on who I consult with), and cutting through that clutter is all I am hired to do. My first choice is always a 3-Dimensional, personalized and printed, full-color, emotionally charged, hand-assembled mailer, followed by a well-trained telemarketing person who sets up a live person-to-person 1:1 meeting. This is true multi-channel marketing…

Following these guidelines has allowed my clients to generate sales appointments for under $200 a piece. Not only have some of these programs generated over 50% response rates (we actually hit the 90% response rate recently), they have allowed our clients to trim non-productive marketing programs out of their budgets and actually plan for controlled growth, even in these economically uncertain times.

And here’s what we’ve learned.

The future of marketing is evolving into short run, personalized, well-targeted, “Coney Island” enhanced, B2B direct mail, versioned to go 3-deep into a prospective company with Information on Demand as an on-line back-up, handed off to a skilled telemarketing support team who’s only mission is to generate a face-to-face with a well-trained sales person. Using this system, not only can you baseline efficacy, you can actually predict expansion and growth.”

Contact:

Do you or your company want to generate a 50% ++ ROI on your next marketing campaign?

Contact East Coast Graphics today to find out how.

info@ecoastgraphics.com or 631.231.9300

Using 1:1 Marketing to Grow Your Business

A prime example of 1:1 marketing is that it’s personal, it’s attention-getting, and it’s directed specifically to an address or a particular person in mind.

Currently, many marketing campaigns are still developed around “old school saturation mail techniques.” Printing several thousand of a generic, “one message fits all” piece and applying a mailing label or black ink jet personalization on the front to achieve greater postal discounts and keeping the unit price down.

This impersonal approach is compared to going to a singles bar and winking at all the women in hopes of landing a date. It is also the most expensive because it generates the national average response of a mere .005%, which can cost almost $600.00 to generate a prospect, not a sale.

In order to improve your response rates and sales cycles, you have to set your company apart from your competition. You can do this by using digital, on-demand, personalized mailers. In fact, everything you send out should be so personalized that the receiver wants to actually open and read what’s inside. It’s a form of “Show and Sell.”

Remember, every company needs new business development products, and in today’s competitive arena, they must stand out and generate a positive response in the receiver or they won’t come back for more. Remember, it’s not just business, it’s personal!

TREND SPOTTING IN MARKETING

One of the Most powerful steps a product or brand can take to get an edge on competitors and make more money is to respond to cultural developments in innovative ways. Emerging trends create specific demands. Smart marketers – in virtually any industry – can benefit enormously by satisfying these cravings with creative and engaging offerings.For example, the current global obsession with eco-friendly and carbon-neutral actions emerged only recently, and is poised to grow even larger in the next few years.

As a marketer, it’s your challenge to recognize what is getting attention and devise a strategy. Many companies – even ones in industries you wouldn’t think could organically “benefit” from global-warming mania – are coming up with creative ways to capture consumers’ imaginations.

A dance club in Rotterdam, Holland is marketing itself as the world’s first eco-friendly nightclub. It has a specially sprung floor. As people dance, the floor moves slightly and generates electricity, which reduces the club’s consumption of outside power. A health club in Hong Kong is doing something similar, harnessing human power from cross-training equipment and exercise bikes.

In the often-vilified airline industry, a start-up carrier called Silverjet is requiring passengers to purchase carbon-offset credits for their flights, which they are then invited to “spend” on the eco project of their choice. Airplanes are airplanes, right? But only Silverjet can claim to be carbon-neutral.

Personalization and social networking are other major cultural trends ripe for exploitation.

Nike is among the brands benefiting from embracing the personalization trend. The footwear company invites customers to visit its Web site and “build” personalized sneakers by choosing colors, materials and designs. Similarly, the Web site for M&Ms’s chocolate candies lets visitors personalize sweets with customized colors and messages.

Even banks – normally bastions of conservatism – have jumped on this trend. Garanti, the largest bank in Turkey, is issuing personalized Visa cards created by customers who upload their own images to the bank’s Web site. Garanti went one step further, allowing cardholders to make a few key banking product decisions, including card fees, reward types and interest rates. Card fees, for example, can be pushed back to zero by committing to a monthly spending minimum. This kind of personalization has the added advantage of allowing the bank to test various value propositions in order to better understand what its customers want. And it’s working: GE Consumer Finance has recently taken a significant stake in Garanti, and other banks, including Washington Mutual and ING, are mimicking the Garanti model.

The new San Francisco-based airline Virgin America is an example of a forward-thinking brand that is benefiting from the social-networking phenomenon by incorporating seat-to-seat networking into its seatback entertainment system, allowing passengers to communicate with others on board.

Imagine you’re flying to a conference. It’s likely that there are other passengers you don’t know who are going to the same conference. Now you can interact with them. Impromptu onboard user groups created on the fly can exchange tips about hotels, restaurants, shopping or sightseeing. Bringing social networking into the real world like this is the way of the future.

Understanding trends, and formulating strategies to benefit from them, requires marketers to take a break from their hectic daily lives and look at the big picture of what is happening in the world around them. It’s rare for most of us to have any time to take a step back, look at the direction of culture in general, and determine how it may affect our businesses.

I would challenge you to take another look at your company or clients from your customers’ perspectives. Think about how you could implement creative strategies that embrace green, personalization and social networking. These are just three of dozens of major trends from which most businesses haven’t yet recognized, reacted or profited.