why direct marketing is your friend
DESCRIPTION
In this presentation for the Colorado Springs Chamber of Commerce "Chamber University" series, Barry McCann explains three reasons why direct marketing rules: 1) you can target customers; 2) you can measure results; and 3) you can test like a mad scientist.TRANSCRIPT
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Why Direct Marketing
Is Your Friend
Barry McCannNew Ideas & Initiatives
Director
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agenda
about me & PaperDirect
about you
advantages you have with direct marketing #1: you can target the right customer! #2: you can measure results! #3: you can test like a scientist!
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about me
New Ideas & Initiatives Director at PaperDirect
past: Everglades Direct (g.Neil), Alamo Rent a Car & First Marketing Company
experience: Business Development, Brand Strategy, Customer Innovation, Product/Software Management &Development, Marketing, Customer Communications, Digital & Litho Printing, Internal Startups, Partnerships
education: Psychology & English Literature (ha!)
lived in Ohio, Pennsylvania, Texas, Florida & Colorado (3.5 years)
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about PaperDirect
help small businesses stand out from the crowd – look bigger and more professional without spending a lot business identity themed events recognition
designed papers through your printer or copier custom-printed & delivered to you
direct marketing experts millions of catalogs annually 60% of sales through our Web site huge organic search presence
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about you
business size 1-10 employees 11-20 employees 21-50 employees 50+ employees
role marketing general manager president/owner
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“direct marketing”
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advantage #1
you can target the right customer!
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the funnel
animals
vertebrates
mammals
mammals that lay eggs
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evolution of targeting
demographics psychographics behaviorgraphics
1970s 1980s 1990s 2000s
Adapted from: Barber, Fredrick and Arik Killion. Directive Corporation/Meredith Integrated Marketing. “Behaviorgraphics: A new approach to online and offline analytics.” DMA 09 Conference & Exhibition.
ageincomelocationgenderethnicityoccupationfirmographics
lifestylesinterestsactivities opinionsbeliefsmotivesuses of products
purchase behaviorsearch termsweb site clickskeywords
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key measures
acquisition cost
retention cost
reactivation cost
average order value (AOV)
lifetime value (LTV)
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tips for targeting
start with the customers you already have who are they? where do they live? what product/service do they buy first? how often do they buy / when did they buy last? how much do they spend?
cast the net wide, then narrow
compiled lists versus response lists
remember to scrub your lists!
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advantage #2
You can measure results!
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source codes!
Ah ha! The secret code!
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what’s a source to do?
connects circulation to purchase
allows segmentation customer type buying behavior marketing offer creative channel price
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key measures
response rate
contribution
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tips for source codes
require a source code
make them easy to use
combine them with account/customer numbers
make them invisible in Internet/mobile marketing
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advantage #3
you can test like a mad scientist!
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you can test like a scientist!
try stuff! different offers different creative design different customer segments
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tips for testing
think like a statistician! keep it random maintain large enough segments to read results test only one variable at a time include a control group
test, then test again (and again) to establish reliability
beware of conclusions based on slight differences
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advantage #4
You can win arguments!
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other resources / tools