alternative prospecting techniques for niche catalogers ... · fooled by “get-rich-quick” and...

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Copyright © 2005, Cigars International Page 1 Alternative Prospecting Techniques for Niche Catalogers Wednesday May 25, 2005 John De Marco Vice-President

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Page 1: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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yrig

ht ©

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5, C

igar

s In

tern

atio

nal

Page

1

Alt

ern

ati

ve P

rospecti

ng

Te

ch

niq

ue

s f

or

Nic

he

Ca

talo

gers

Wed

nesd

ay M

ay 2

5, 2

005

John

De

Mar

coVi

ce-P

resi

dent

Page 2: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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5, C

igar

s In

tern

atio

nal

Page

2

Bui

ldin

g B

lock

s

How

to a

pply

Mec

hani

cal E

ngin

eerin

g to

D

irect

Mar

ketin

g

“You

hav

eev

eryt

hing

you

nee

dto

be

successful

.” –

Prof

. Riv

era,

Uni

on C

olle

ge

Rec

ipe

for failure

–co

py w

hat w

orks

for

Cig

ars

Inte

rnat

iona

l

Page 3: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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5, C

igar

s In

tern

atio

nal

Page

3

Who

is C

igar

s In

tern

atio

nal?

Foun

ded

in 1

996

–m

ulti-

chan

nel r

etai

l cig

ar

com

pany

–re

tail

stor

e, m

ail-o

rder

, int

erne

t

Ver

y ni

che

mar

ket w

here

onl

y a

coup

le o

f co

mpe

titor

s do

min

ate

the

mar

ket

Con

sum

able

item

, gro

wth

driv

en b

y a

grow

ing

mai

ling

list,

high

rete

ntio

n

8 ca

talo

g m

ailin

gs p

er y

ear

Page 4: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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5, C

igar

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atio

nal

Page

4

Adv

erti

sing

His

tory

Fool

ed b

y “g

et-r

ich-

quic

k” a

nd “n

o-br

aine

r”

sale

s pi

tche

s: S

hopT

V, i

mal

l, em

ail b

last

s

Lead

gen

erat

ion:

car

d de

cks,

read

er s

ervi

ce

card

s, o

nlin

e ca

talo

g re

ques

t site

s

Trad

ition

al p

rosp

ectin

g: l

ist r

enta

l, co

-op

erat

ive

data

base

s, s

urve

y da

ta

Alte

rnat

ive

pros

pect

ing

Page 5: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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5, C

igar

s In

tern

atio

nal

Page

5

Alt

erna

tive

Pro

spec

ting

Opt

ions

Qua

lifie

d le

ad g

ener

atio

n: u

sing

dire

ct re

spon

se s

pace

ad

verti

sing

(run

-of-b

ook

and

clas

sifie

d se

ctio

ns)

Emai

l bla

sts:

tar

gete

d an

d un

-targ

eted

trip

le o

pt-in

, CAN

-SP

AM c

ompl

iant

, leg

itim

ate

vend

ors

Free

Sta

ndin

g In

serts

(FSI

s):

new

spap

er c

oupo

ns

Pay-

per-

clic

k Se

arch

Eng

ine

Mar

ketin

g

Pack

age

Inse

rt Pr

ogra

ms

Car

d D

ecks

Page 6: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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5, C

igar

s In

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atio

nal

Page

6

Som

e E

xam

ples

Car

d-D

ecks

Spa

ce A

ds: R

un o

f Boo

k

Page 7: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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5, C

igar

s In

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atio

nal

Page

7

Mor

e E

xam

ples

Spa

ce A

ds: C

lass

ified

Are

asP

acka

ge In

sert

Pro

gram

s

Page 8: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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8

Get

ting

Sta

rted

–B

asic

Str

ateg

y

Don

’t ba

nk s

ucce

ss o

r fa

ilure

on

one

vehi

cle

Sele

ct a

nd d

esig

n yo

ur a

d fir

st:

•le

ad g

en(n

o pu

rcha

se re

q’d)

•qu

alifi

ed le

ad g

en(s

mal

l pu

rcha

se re

q’d)

•pr

ofita

ble

sale

Set g

oals

Mea

sure

you

r res

ults

TEST

, TES

T, T

EST…

you

ca

n m

ake

it w

ork

Failu

re:

Is it

the

offe

r?

Unr

easo

nabl

e go

als?

R

etes

t with

a d

iffer

ent o

ffer,

perh

aps

diffe

rent

cat

egor

y

Succ

ess:

atte

mpt

the

sam

eof

fer i

n an

othe

r cam

paig

n w

ithin

the

sam

eca

tego

ry

Con

tinue

d Su

cces

s:te

st

anot

her c

ateg

ory

or c

hann

el

Page 9: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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igar

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atio

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9

How

to

fail

grac

eful

ly!

No-

brai

ner #

1: c

ompe

titor

ran

in e

very

issu

e fo

r 2 y

ears

No-

brai

ner #

2: e

mai

l bla

st to

hi

t 4m

m la

st m

inut

e ho

liday

sh

oppe

rs

Goa

l: 10

0 ne

w c

usto

mer

sR

esul

t: 27

(and

1 w

as th

e br

oker

)G

oal:

116

new

cus

tom

ers

Res

ult:

86

Page 10: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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10

Met

rics

to

defi

ne a

su

cces

sful

cam

paig

n

Cam

paig

n w

ill b

e pr

ofita

ble

in 6

mon

ths

Page 11: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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11

Str

ateg

y –

Cre

ate

You

r O

ffer

Sket

ch th

e of

fer

Ad

agen

cy v

s. in

-hou

se?

How

do

you

plan

on

qual

ifyin

g th

e cu

stom

er?

Wha

t’s th

e ho

ok?

Will

ther

e be

a “c

oupo

n” o

r or

der f

orm

on

the

offe

r?

How

will

cus

tom

ers

resp

ond?

ph

one,

fax,

inte

rnet

Page 12: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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12

Str

ateg

y –

Whe

re t

o T

est

Set y

our b

udge

t low

and

ex

pect

atio

ns h

igh

Use

you

r int

uitio

n an

d hu

nch

to fi

nd a

test

cat

egor

y fo

r lo

w-r

isk,

low

-cos

t pl

acem

ents

Seek

opp

ortu

nitie

s th

at c

ast

a w

ide

net:

emai

l bla

sts,

FS

Is

Che

ck y

our m

etric

s

With

the

slig

htes

t sm

ell o

f su

cces

s, ro

ll-ou

t mor

e ag

gres

sive

ly

Page 13: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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13

Str

ateg

y –

Tra

ckin

g R

esul

ts

Be

anal

abo

ut tr

acki

ng

resu

lts w

ith k

eyco

des

Ana

lyze

you

r cam

paig

n by

cat

egor

y, c

hann

el

(pho

ne, f

ax, w

ebsi

te),

and

even

dem

ogra

phic

s

Page 14: Alternative Prospecting Techniques for Niche Catalogers ... · Fooled by “get-rich-quick” and “no-brainer” sales pitches: ShopTV, imall, email blasts z Lead generation: card

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14

Str

ateg

y –

Larg

er R

ollo

ut

Cre

ate

a ca

tego

ry m

atrix

and

m

ap o

ut a

larg

er s

trate

gy

Con

side

r bro

kers

for l

ower

co

st re

mna

nt o

ppor

tuni

ties

See

k ou

t exc

hang

es fo

r ce

rtain

med

ia: P

IPs,

blo

w-in

s

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15

Str

ateg

y –

Get

ting

the

2nd

Sal

e

Inse

rts w

ith th

e fir

st

pack

age:

cat

alog

, new

in

cent

ives

to b

uy a

gain

Follo

w-u

p w

ith re

gula

r ca

talo

g m

ailin

gs

Inte

rnal

ly-g

ener

ated

em

ail c

ampa

ign:

low

-co

st re

min

der

Con

vert

them

to a

re

gula

r cus

tom

er!

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16

Dif

fere

nces

in

Alt

erna

tive

vs.

Tra

diti

onal

Trad

ition

al li

st p

rosp

ectin

g:

•C

usto

mer

s im

med

iate

ly q

ualif

ied

as c

atal

og b

uyer

s

•Pr

oven

suc

cess

reco

rd, m

ap to

pro

fitab

ility

is c

onfir

med

Alte

rnat

ive

pros

pect

ing:

•Fi

rst p

urch

ase

does

n’t n

eces

saril

y qu

alify

the

cust

omer

as

a re

gula

r buy

er

•Se

t stri

cter

goa

ls, b

e im

patie

nt

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17

Que

stio

ns