Money Mailer of Atlanta

Salesmanship, Repetition and Direct Mail

2006-09-15T11:14:00.000-04:00

Aug 2, 2006 8:58 AM , By Ernest Nicastro

In a classic business-to-business print ad from the late 1950s for McGraw-Hill Magazines, an imposing-looking executive sits in his chair. He has both feet planted firmly on the ground, a scowl on his face. His hands are folded together in front of him and his elbows rest on the chair; he leans ever so slightly forward. To his right run these eight lines of copy:

“I don’t know who you are.

I don’t know your company.

I don’t know your company’s product.

I don’t know what your company stands for.

I don’t know your company’s customers.

I don’t know your company’s record.

I don’t know your company’s reputation.

Now—what was it you wanted to sell me?”

Across the bottom, a single line of copy drives home the selling proposition:

Moral: Sales start before your salesman calls—with business publication advertising.”

This ad amplifies and expands on what many, including David Ogilvy, consider to be the single best definition of advertising ever given. “Advertising,” said copywriter John E. Kennedy nearly 80 years ago, “is salesmanship in print.” And any salesperson worth his or her commission check will tell you that landing worthwhile new business takes a repeated and concerted effort—and lots of contact with the decision-maker. This is all the more true with salesmanship in print (or across the airwaves, phone lines and other forms of modern communication).

Repetition is, of course, fundamental to the success of any advertising program.

Important note: Do not assume that your prospects will see, hear or otherwise experience your advertising every time you expose them to it. Ample evidence exists that in the din and clutter of today’s over-communicated world your prospects will miss or ignore your marketing message two out of every three times you communicate it.

That’s why, in print advertising, if you have the budget to run either six full-page ads or 12 half-page ads it’s almost always better to go for the 12 exposures. Another approach is to run a full-page ad in the publication’s biggest, most popular issue(s) and smaller ads in other months.

Two cost-effective ways to use direct mail to communicate your marketing message to customers and prospects:

Repeatedly mail the same letter or direct mail package to the same people. If your sales letter or direct mail package is generating an acceptable number of orders or leads, don’t hesitate to mail it again and again to the same list. The basic premise for recommending this strategy can best be summed up in five words: “People quickly forget” and “Things change.”

Consider this: The average person is exposed to well over 500 sales, marketing and advertising messages every day. Most of these messages do not even so much as register a blip on the mental radar screen. Of the handful that do register, most are forgotten within two weeks.

Another reason this strategy works is change. Your prospects’ lives are constantly evolving. For example, you’re an insurance agent mailing to a list of new homeowners. Three months ago Mr. and Mrs. Jankowski had all the life insurance they needed. So they tossed your envelope without even opening it. But three weeks ago Mrs. Jankowski found out she’s pregnant—with twins. Based on this life-changing event, it’s a good bet they’ll be a bit more receptive to your next mailing.

Many highly successful direct marketing organizations such as Dow Jones & Co. and Geico routinely practice this strategy of repeatedly mailing the same message to the same people. Speaking from my own experience, I know that every year I get several identical mailings from The Wall Street Journal, and likewise Geico.

One prominent example of a company whose regular mailings of the same “package” helped make it a huge success is AOL. How frequently should you do your mailings? Quarterly is probably a good idea for starters. But, as with everything else, test to determine the optimum frequency.

Send a series of mailings to the same people. To quote consultant Richard Brock, “Sales is a process of communication, not an event.” That’s why, especially if your sales process involves a long lead time, it’s a smart move to plan and budget for a series of mailings to the decision-maker and key decision-influencers.

Particularly in business-to-business direct marketing and big-ticket consumer purchases a follow-up mailing to prospects gained through your lead-generation efforts will help you convert substantially more sales.

Before starting a program like this, give careful thought to what you want to say and how you want your campaign to unfold. For example:

In your first letter highlight the three biggest benefits of your product or service.
In letter two, take just one of these benefits and amplify and expand on it; focus most of your copy on this one benefit
In letter three take another key benefit and do the same. And so on.

Let’s say, for instance, you market software that sells for $20,000 but the payback time for your product is typically six months. One of your follow-up letters would focus exclusively on this benefit. You’d give your prospect lots of details and explain how your product is able to generate such a fast payback.

Plus you’d include several very credible testimonials. And the offer in your letter would be an eight-page case study detailing exactly how a current user achieved payback in half the normal time and is now enjoying a highly profitable return on investment.

And don’t stop with just four letters. Depending on your sales cycle you may want to send six letters, four postcards, three cover letters attached to product reviews or magazine articles and eight e-mails (assuming your prospect has given you express permission to send e-mail). In every mailing, always give a reason and a method for responding. Always ask for some kind of action.

When it comes to large-ticket, long-lead-time sales, it really is a process of communication. And the program just outlined is an ideal way to carry out the communication process while gaining top-of-mind awareness and building relationships that lead to increased sales.

Another effective approach is to:

Mail a series of postcards. For example, copywriter Rein Nomm of Rein Nomm & Associates created a series of five postcards for an environmental engineering firm.

Here’s a brief synopsis of how the program unfolded:

Card One—A full-color photograph shows a thickly gloved hand moving a forlorn looking chess piece (queen, I believe). The headline reads “Wasted Move?” And the subhead states, “With waste, a wrong move can be costly.” The body copy goes on to tout, among other things, the benefits of the environmental firm’s Corrective Action Group and its waste assessment and remediation services.

Card Two—This time the postcard shows heated action from a Little League baseball game. It’s a close call at home plate and the ump is giving the “You’re out!” sign. The headline reads, “Are The Calls Going Against You?” with the body copy singing the benefits of working with the firm’s Industrial Compliance Group.

The postcards continue in this vein until we get to card five, last in the series. This time the photograph is of a man-eating great white shark. Its giant head is breaching the water and its menacing jaws are open wide, revealing an even more menacing set of teeth. The headline? “FISH OR CUT BAIT!”

The cards were mailed to prospects and former clients at the rate of one every 10 days over a period of two months. And the campaign’s compacted and concentrated series of informative contacts generated substantial top-of-mind awareness and, most importantly, several new projects.

The bottom line, as any successful salesperson or marketer knows, is this: You’ve got to stay in front of your prospects through repeated contact—whether that’s in the mail, by phone, via permission-based e-mail, in person or, as is most likely, a combination of activities.

(Not just any contact, mind you, but meaningful, informative, educational, persuasive contact that address the issues and concerns of the crotchety executive in our ad.) Direct mail is one of the most effective and profitable tools any business has at its disposal to achieve this repeated contact.

Back to the Well

2006-09-12T14:08:00.000-04:00

Going back to an old customer can be awkward. Get over it. Former clients offer your best chances of all for making a sale. Here are a few tips to rejuvenate that old business relationship — the right way.

1. Never let relationships lapse
Even if they haven't bought anything in a year, maintain occasional contact through letters and personal calls. When their economic situation turns for the better, you'll appear as the one who stood by them.

2. Keep databases current
Your customer relationship management software is only as good as the salespeople using it. Make sure contact information and account status is always up-to-date, so it'll actually be helpful when you need it the most.

3. It's all in the timing
If you're able to lure a customer back immediately from your competitor, great. If not, figure out when to strike again — perhaps when the next contract is coming up for renewal, even if that's a year or two down the line.

4. In with the new
In the time that's passed, odds are your company has introduced new products and services to its repertoire. But does your old client know that? Figure out what the customer's needs are now, and shape the pitch accordingly.

5. Be careful with price breaks
If you offer discounts only to those who've left, you're setting a tricky precedent. Consider offering additional, personalized services to clients instead, to lure them back into the fold without sacrificing your own profits.

Sales and Marketing Management

How to Improve/Create Response from your Direct Mail Advertisement

2006-09-06T14:18:00.000-04:00

There are four simple steps in creating response from your direct mail advertisement. If you follow these steps you will increase your profits.

50% of your response comes from who you mail to. An outrageous example would be a hardwood floor installer mailing his direct mail piece to apartment dwellers. I see restaurants, home improvement, and service companies complain or stop their marketing because they are mailing to residences that do not have the income or more importantly the disposable income to buy their products and or services. If you are not mailing to the right people they will not buy from you.

20% of your response comes from your offer. Another outrageous example is a pizza restaurant offering a free pizza vs. another pizzeria offering a dollar off a supreme pizza; or a painter offering free pressure washing with a purchase of an outside paint job vs. another painter who is offering a hundred dollar discount. Consumers want something FREE or something of VALUE for less. Every company is in the business to generate and keep customers. If they can do this profits will follow. Think about your industry and what you can offer to get that new customer. If you have to give something away for free or at a considerable discount do it. The client will buy from you and if you deliver a good product or service they will continue to buy from you and tell their friends to buy from you.

20% of your response comes from words and pictures. So many times I see a company with good products and or services that have good offers but horrible pictures and text. When mailing to consumers you do not have the ability to speak to them or to overcome their objections. You must use words and text to communicate what you are selling and why the consumer should buy from you instead of your competition. Give the consumer a reason to buy and they will if your pricing is competitive. Give them benefits and use pictures to show them your product. If you are selling a service that will help protect their family show pictures of families. If you are selling food that looks and tastes good show them your food. If you can clearly tell them why to buy they will.

10% of your response comes from the overall look of the advertisement. Once you have taken the time and followed the steps above make the overall advertisement look good. Choose colors that pop, make the text easy to read and not all bunched together. Remember, you only have a few seconds to grab the consumer’s attention or the piece is going right in the trash can.

Lastly and just as important as all the steps above make it easy for the consumer to buy from you, if you have a phone number on your advertisement make sure that you have some one answering the phone with a great attitude who will make the consumer happy that they called. If you do not or can not have someone answering the phones make sure you have an easy way to capture the calls and then return them as soon as possible. Operate with the sun down rule; return all your calls before the sun goes down. If you have a retail establishment make sure your place is clean and appealing. When ever some one walks into the store greet them with a friendly hello and ask them how you can help them. Time and time again I see restaurants that are dirty and have poor service. Their food may be excellent but their client retention is horrible. The same goes for the service industry. Rude or pushy people answering the phones and messages not returned is not a way to attract and keep new clients.

If you have any questions or concerns with your current direct mail piece or if you have never created one and are interested call our office at 770-924-8526 or visit www.MoneyMailerOfAtlanta.com

Quick & Easy Marketing Tip:

2006-08-30T10:29:00.000-04:00

First and fore most keep in front of your current and former clients! These are the people that are currently buying from you or have purchased from you. They know your product or service works! There may be other products or services that they need from you but do not know you offer.

Second and almost as important; ask your current clients for referrals. Again, your current clients are purchasing from you for a reason. They are happy with your customer service and they know your products and or services work. These people are walking testimonials; ask them if they know of any other people who would benefit from your service/products. Then reward your clients for giving you a lead that turns into a new client. Give them cash, a girt certificate, something that has monetary value that they can go out and use for themselves and then continue doing this every time they give you a lead that turns into a client.

How to do all this? That is the easy part. It can be as easily as a phone call or a direct mail campaign. Visit www.moneymailerofatlanta.com/marketing.htm for more details.

A Competitive Edge

2006-08-22T10:30:00.000-04:00

Are you looking for a way to increase your competitive advantage? Would strong community presence help your bottom line? Let's consider some interesting statistics from a recent survey.

·92% have a stronger positive image of companies who support a cause they care about

·78% agree that cause marketing should be standard business practice

·66% report having greater rust in those companies aligned with a social issue

·84% report they would likely switch brands, retailer, or service providers to one associated with a good cause when price and quality are equal

These findings strongly support the idea that your business can prosper by doing 'good' in the community you serve.

2004 Cone Corporate Citizenship Study

New Census Data Details Major Changes in Language Landscape

2006-08-21T08:56:00.000-04:00

By Bradley Johnson

Published: August 20, 2006

LOS ANGELES (AdAge.com) -- If you want to communicate with California, you may need to try a language other than English or even Spanish. A full 42% of Californians speak a language other than English at home, with two-thirds of that group (28%) speaking Spanish and the rest speaking some other tongue. Not coincidentally, 27% of Californians are foreign-born, the highest in the nation.

Flip side
On the flip side, West Virginia has the lowest percentage of foreign-born residents (1%) and highest share of English speakers (99%). Some 95% of West Virginia residents are white and non-Hispanic (vs. 43% in California). But West Virginia has the lowest share of college graduates: Just 17% of residents have a degree, vs. 30% in California.

These are among the findings from the first major release of the American Community Survey, a Census Bureau program that each year will provide a demographic portrait of the nation based on a survey of 3 million households. The survey replaces the old "long form" version of the every-10-year census.

New data released
The Census Bureau last week released survey data on demographics, with results on economics, housing and other details to follow in coming months. Among the new data:

Ancestry: 17% of Americans say their roots are German, the largest ancestral group; 12% say their background is Irish; English (10%) ranks third. The fourth-largest group: 7% of the population says its ancestral background is "American."

Immigrants: One in eight residents (12.4%) are immigrants (legal or illegal), up from 11% in 2000. Latin America accounts for more than half (53%) of the immigrant population; 27% came from Asia/Pacific. Nearly one-third (31%) of immigrants are from Mexico; there are an estimated 11 million Mexican-born residents in the U.S., greater than the population of all but seven states.

Age and household
Age and household: Utah has the nation's youngest median age (28.5), highest percentage of households with children (44%) and largest families (average 3.1 people). The oldest state? Maine (median age 41.2). In Florida, 29% of households have residents age 65-plus, the highest in the nation, but the Sunshine State ranks sixth in median age (39.5). Nation's median age: 36.4.

Education: 27% of U.S. adults (age 25+) have a bachelor's degree; 10% have an advanced degree. Massachusetts scores first among states in percentage of residents with a bachelor's (37%) or advanced degree (16%). Among large cities, San Francisco is by far the most educated: 50% of residents are college graduates.

They love New York: 21% of the state's residents are foreign-born, second highest after California. But native New Yorkers stay home (or come home); 82% of New York's U.S.-born residents were born in the state, the highest percentage in the nation.

New Residents Can Make Up for Local Customer Turnover

2006-08-18T09:58:00.000-04:00

Targeting new residents is the most effective way to replace the 20 percent to 40 percent annual customer turnover rate that typical small retail operations face.

According to research cited in a new study by Moving Targets (via DMNews), movers go through five stages of transition during a move: Separation, as people say goodbye to their old connections; Transformation, the physical aspect of the move; Early Integration, encompassing the first six months in the new community; Later Integration, the subsequent period of adjustment; and Maintenance, the indefinite period once the resident is finally settled in.

It is during the Transformation, Early Integration and Later Integration stages that new residents represent the immense opportunity for local retailers. According to the U.S. Postal Service, this period represents a time of "hyperspending" as movers buy everything from new drapes to Chinese carryout. On average, new residents spend $7,100 for goods directly attributable to their relocation. During the first 24 months after a move, an estimated 80 percent of new residents will try new products and services from local businesses.

The Moving Targets study reports the following facts about new movers: 62 percent eat pizza; 65percent of female new residents are anxious about finding a good hairstylist; 67 percent say it's difficult to find an honest auto repair shop; 80 percent redeem gift certificates offered by local merchants; and 98 percent appreciate gifts or offers from local merchants.

Yahoo Search's Secret Weapon: Direct Mail

2006-08-14T15:49:00.000-04:00

By Cara Wood
August 8, 2006

Yahoo Search Marketing's recent business-to-business push for its Sponsored Search service uses one of the oldest tactics in direct marketing: direct mail.

The Yahoo unit drives sales by sending targeted three-fold pieces with promo codes and business reply cards that direct companies to http://sponsoredsearch.yahoo.com/connectme. The unit tracks conversion rate, cost per acquisition and customer lifetime revenue as well as how direct mail assists its other acquisition campaigns.

"Yahoo Search Marketing leverages direct mail as a key component of its marketing and customer acquisition strategies," said Patrizio Spagnoletto, director of acquisition marketing at Yahoo Search Marketing, Burbank, CA. "[It] tests on a continuous basis multiple creatives, formats and lists with the ultimate objective of increasing overall conversion rates."

Yahoo Search Marketing has used direct mail to acquire customers for the past five years. Mr. Spagnoletto said direct mail aids both direct and indirect customer acquisition, especially with the market the company is targeting.

"Few other channels allow us the ability to reach out to our target audience with actionable messaging that is compelling to the small business owner," he said. "In instances where the business owner is not ready to complete the purchase, direct mail enables us to initiate a dialogue with the customer and provide them with more specific information through e-mail, telesales and additional mailings."

The mail piece highlights the process of the Sponsored Search program. It features graphics of the online search window and potential customers holding up signs indicating their desire to purchase. For example, the exterior fold is headlined, "Connect with customers searching for what you sell. Sign up for Sponsored Search and get a $75 credit." Alongside is an image of a smiling young woman holding up a sign that says, "Sell to Me."

Inside, the second fold is headlined, "Sponsored Search puts your business where interested customers are searching." A man is shown with a sign that reads, "I want to buy what you sell." Finally, the centerfold is headlined, "Your new customers are out there. We'll help them find you." A woman holds aloft a sign that says, "Ready to buy."

The mailer's recipient is offered $75 off the $199 Fast Track starter service if he signs up for Sponsored Search by Sept. 30. The prospect is asked to visit the Connect Me section on Yahoo's Sponsored Search site, call a toll-free number or send in the business reply card.

Yahoo Search Marketing did not disclose quantities mailed or the lists used but said the target was small businesses with an online presence.

"The goal of our creative is to make sure the Yahoo brand is well represented but to also bridge the gap between Yahoo for your personal life and Yahoo for your business," Mr. Spagnoletto said. "We capture the excitement and playfulness that embodies the Yahoo brand and pair it with effective and product-specific messaging and art. These elements ... work together to pull the reader through the package and help to sell our message to any business owner."

Other tactics used by Yahoo Search Marketing include affiliate marketing, graphical online advertising and paid search.

Yahoo Sponsored Search is a pay-per-click service that lets companies bid on keywords. Each new account requires a $5 initial deposit, and the minimum bid per clickthrough is 10 cents. Yahoo Search was the second-most-used engine in June with 23 percent of the search traffic, according to the Nielsen//NetRatings MegaView Search. Google had 49 percent.

Sponsored Search has about 100,000 current advertisers ranging from Fortune 500 companies to small, single-owner-operated businesses. Firms include Citibank, Gap, The New York Times' nytimes.com and Microsoft.

Yahoo Search Marketing will continue its direct mail program to expand that list of advertisers. Mr. Spagnoletto said that testing the campaign leads to customer insights that influence market segmentation and improved creative for subsequent multichannel programs. Continuous testing of the direct mail campaign helps Yahoo Search Marketing overcome the challenges of scalability, he said.

"A key challenge we face is maintaining response rates and CPA while expanding our target universe and mail volume," he said.

12 Boring Ideas That Make Copy Sell

2006-08-09T09:47:00.000-04:00

In marketing, people are always looking for the new thing. And with the start of a new year, you undoubtedly will be bombarded with information about new technology, new lists, new creative formats and all sorts of new whiz-bang stuff. But when it comes to copy, the old ideas are generally the best ideas. Why? Because selling is about communicating with people, and people are pretty much the same today as they ever were.

Yeah, that’s a little boring. I’d love to reveal some spectacular new copywriting discovery. But for the most part, the stuff that worked 100 years ago still works today. And 100 years from now, it will work just as well.

Buzzwords come and go, of course. The style of marketing copy is generally shorter and more to the point now. But if you look at a magazine, catalog or direct mail package from decades ago, you’ll see the same principles at work as you would today.

Here are a dozen of the most important:

* Make your copy sell. In direct marketing, writing is not about words per se. It’s about selling. And the way to sell is to combine your communication skills with knowledge of psychology. As the eminent Herschell Gordon Lewis said, "Psychology + Communication = Salesmanship."

* Sell as much or as little as needed. Ask yourself, "How much selling do I need for this audience? How familiar are people with this type of product or this particular product?" If you are selling a familiar product with a common offer, such as a magazine with a free trial, you don’t need to push as hard as you might when selling a less familiar product with a less common offer.

* Use a proven copy formula. There are as many formulas as there are copywriters, but they all boil down to the same ideas. You need to 1) Establish your objective, 2) Clarify the benefits to your prospect, 3) Show how the benefits will be delivered, 4) Prove your statements, 5) Add sweeteners and facilitators, and 6) Tell your prospect how to respond.

* Use the imperative mode.That’s a fancy way of saying, "Tell people what to do." On the envelope, say "Look inside" or "Open immediately." In the letter, say "More" or "Read on" to bump readers to the next page. On the order form, say "Complete and mail within 14 days" or "Ask for your free issue today" to encourage quick response.

* Focus on one clear, big benefit. This will simplify your message, select your audience and differentiate your product from others. If you’re selling a computer design program, your big benefit might be that it can automatically translate any print design into a Web page. There may be other benefits, such as low cost and speed of operation, but these would be secondary. Usually, your big benefit is the subject of your main headline.

* Make clarity your No. 1 goal.People do not interact with advertising the way they do with game shows and sitcoms. They’re not looking for entertainment, they’re looking for relevance. "What’s in it for me? Why should I do this?" Avoid clever verbiage and make your message clear and direct.

* Make a strong offer.An offer should be more than simply presenting your product and mentioning the price. An offer is a deal you make, a special low price, an exclusive premium, the chance to try the item free for 30 days, etc. Your offer is the crux of every promotion, so make it as strong and appealing as possible.

* Provide enough information for a decision. This includes product information, the offer, ordering instructions, guarantee, etc. If a decision will prove difficult for products that are expensive, complex, new, hard to explain or that require a considerable commitment, you may need to use a softer offer (such as a free trial) or break the sales process into multiple steps.

* Guarantee satisfaction. Because people cannot see or handle your product beforehand, there is always the perceived risk of being disappointed or ripped off. A guarantee is not a legal throwaway. It’s a powerful benefit you should highlight.

* Provide a good reason for immediate response. Studies show that people are more likely to respond to requests when a good reason is given. Is supply limited? A seasonal rush on the way? Can you sell only a limited number to each customer? Do you have to plan your production by a certain date?

* Make it easy to order. Exclusivity and convenience are the main reasons people transact via mail order. So it is imperative that you make ordering as quick and effortless as possible. Make your offer easy to understand and complete. Give short, simple ordering instructions. Provide toll-free numbers, postage-paid envelopes and the ability to respond by fax, e-mail or the Internet.

* Use the word free. This may be the only word that stands no chance of becoming a cliché. Look for features, benefits, accessories and premiums that can be offered for free. "Free" almost always generates more interest and response.

Stop yawning. I know this is pretty obvious stuff. Or is it? Are you really making it easy to order or are there hurdles? Have you provided enough information for a decision or are your potential customers left wondering about some detail? Are you selling too much or too little? It may sound boring. But I promise it can make your results very interesting.

By Dean Rieck

Better Branding

2006-08-08T09:34:00.000-04:00

Whether you're a small-business owner who's looking to invest in brand marketing for the first time, or someone whose current branding efforts are falling short, you need to carefully consider your next steps.

Here are five useful tips for getting started, or back on the right track:

1. Be Realistic
Before venturing forward with a brand marketing plan, small businesses should set attainable objectives and not try to mimic their larger competitors. "The first imperative for a small business is to live within your means," says Tom Simons, president of Partners & Simons, an advertising firm based in Boston. "Understand what kind of brand marketing methods and tools you can afford."

2. Consistency Counts
Once a small business decides to invest in branding, executives should firmly define the message they want to convey about the company. "That becomes the driver for all marketing going forward," says Beth Barbee, president of Darwin, a strategic communications firm that specializes in brand development, based in Denver. "Every single piece of communication, even if it's sales oriented, should be treated as if it has some accountability for that [company's] brand," she says.

3. Tap Into Resources
When it comes to implementing a branding program, "in with the new" does not necessarily imply "out with the old." One of the most cost-effective resources a small business has is the endorsement of its old customers. A small business should concentrate on "using its earliest customers as a means to attract more," Simons says. He recommends using referral programs, testimonials, and Internet communications like Weblogs to harness positive customer experiences. "The most effective and authentic brand marketing communication is word of mouth," he says.

4. Make It Clear
Brand messages should be concise and to the point so that people on the receiving end are not left confused or scrambling to uncover the meaning. "Don't overexplain yourself," Simons says. "A small business embarking on a brand marketing program must be able to communicate the proposition in a few sentences—meaning two or three."

5. Be Patient
Regardless of how big or small your company's budget is, implementing a branding program is not going to move sales needles overnight. For companies that can't afford to invest in pre- and post-awareness research to measure results, "make sure they give enough time to see how [branding efforts] change year-over-year sales, by comparing with years when the branding wasn't in place," Barbee says. She recommends companies wait 18 to 24 months before assessing the impact.

Sales & Marketing Management

More Tools to Boost Mail Response

2006-08-07T09:40:00.000-04:00

When we last talked, I was pondering my home remodeling project and how craftsmen always have an overflowing toolbox. For any project, they can rummage around and pull out the right tool. I noted that it’s the same for advertising craftsmen. The best always have a "toolbox" filled with ways to encourage people to part with their money. Having accumulated thousands of these selling tools and techniques, I promised to share 99 of them with you and started this series by giving you the first eight. Here are a few more.

9. Test a separate order form. Sometimes you can attach an order form to a letter or brochure and get good results. But a separate order form is easier to use and doesn’t force your prospect to take the extra step of tearing things apart. It’s worth a test, especially for inquiries, sales leads and impulse sales.

10. Offer a toll-free number. Some people don’t like filling out forms. They prefer a phone call, even if it takes longer. Have the toll-free number jump off the page in big, bold type. Shorten "toll-free" to "free." For example, "CALL FREE 1-800-555-1234." It gets to the point faster.

11. Offer something free. Creative techniques come and go, but "FREE" will be with us forever. You almost always can boost response by offering something for free: free premium, free dollars-off coupon, free sample, free accessory, free upgrade, free consultation, free issue, free book, etc.

12. Target messages to your audiences. Everyone’s hot buttons differ. If you’re mailing to a variety of markets, adapt your message to each one. For example, if you’re selling an accounting software program to home computer users, stress the benefits of getting control of finances, easier budgeting or faster tax form preparation. If you’re selling the program to home businesses, highlight the benefits of saving time, being more competitive or eliminating paperwork.

13. Aim for clarity. Forget the fancy stuff. If your readers don’t understand what you’re selling and why, they won’t buy. Your first job is to be clear. Your copywriter should get to the point quickly. Your designer should make the copywriter’s words easy to read.

14. Appeal to emotion first, reason second. Most direct marketers are number-crunching, logical people. It’s easy for us to fall into a cold, left-brain, bullet-pointed, 714 reasons type of sales pitch. But people make decisions in their right brain, based on emotion. Then they "justify" that decision with logic. To set up a sale, appeal to emotion first. Then, to close and confirm a sale, use logic.

15. Be truthful and believable. If you’re truthful, you believe what you’re saying. If you’re believable, your prospect believes what you’re saying. Back up your claims every way you can: testimonials, case studies, visual evidence, solid guarantees, merchandise return labels.

16. Encourage involvement. Get your prospect’s hands busy filling out a form, picking up the phone, affixing a stamp or leafing through multiple inserts. Action breeds action. The more involved your prospect, the more likely you are to get an order.

17. Always state a clear, specific call to action. People aren’t stupid, but they are lazy. Never make people guess or assume anything. If you want a phone call, say so. If you want a filled-out order form, give instructions to do it. People don’t act unless you tell them what to do.

18. Ensure extras have a clear purpose. Many consultants like to add extra pieces because they make for a bigger, more impressive (and more costly) package. But you’re smarter than that. Make sure that any extra-lift letter, buck slip, sticker, membership card, flier or even brochure has a clear, tactical purpose. If you can, test the package with and without it to evaluate its cost effectiveness. Often, results are the same or better without the fancy stuff.

So far, we’ve covered general ideas related to your prospect and creative. Next time, we’ll plunge into specific offer tactics that can boost response. This series of articles will last nearly the whole year, which, coincidentally, is about how long my remodeling project should last. The difference, of course, is that while I’m setting my checkbook on fire, you’re getting everything for free.

By Dean Rieck

Long-Term Romance: 10 Ways to Lure Customers to Your Loyalty Program

2006-08-03T13:11:00.000-04:00

Loyalty programs can be your key to high conversion rates. People like to be appreciated for their patronage – especially if you offer them something special first-time or infrequent customers don't get. Following are some simple strategies for turning a one-time customer into a habitual and happy loyalty program spender:

1) Make it easy for them: Structure your program to make joining as simple as possible. Design it so that all of your customers can participate at some level.

2) Make it easy for you: Choose vendors who are flexible and don't just offer technical expertise but also support, so that the ball is never dropped.

3) Add real value to your loyalty program: Consider your costs and ROI, and focus on what's valuable to your customer.

4) Personalize: It costs almost nothing to call your customers by name, but it makes them feel special. It also helps create the impression that your message was expressly intended for the reader.

5) Show them you're paying attention: Turn the data you receive about your customers' interests and preferences into value for them.

6) Get it in front of them: Promote your loyalty program at every customer touch point -- call center, website, etc.

7) Make your loyalty program viral: People like to pass valuable and exciting opportunities on to their friends, so make it easy for your customers to get others to join your loyalty program.

8) Tie your PMS into your loyalty program: Work your unsold inventory into your customer rewards, so that you move that merchandise quickly and effectively.

9) Reward your customers for planning ahead: Check your past history to see what inventory sells slowly or usually needs to be moved, and promote this to customers far in advance at a great rate.

10) Bring effective partnerships into the equation: Sell mini and combination packages that make it easy for customers to purchase not just your merchandise, but complimentary products and services, too.

by Steve Webster, Chief Strategy Officer and founder, iPost

The Three Keys to Advertising Success

2006-08-02T18:43:00.000-04:00

Advertising is very important to any business, large or small. When you break it down as far as you can, you find three necessary components.

1) Awareness - How does a potential customer find your business? They might see your store front sign, a friend might refer them, they may have a need and search you out, or they may see (and remember) your advertising. Of these, you only have control over your advertising.

2) Trial - What causes a potential customer to try your product or service? You have something they want or need. It is important that your ad appeals to the customer enough that they will make a purchase. It is your responsibility to have a product, service and offer that makes a person commit to a purchase.

3) Reinforcement - How often do you need to advertise? The industry standard is 7 times before your message begins to register with the average consumer. Repetitive advertising places your business in the minds of potential consumers increasing your sales and your customer base.

Your success is based on how well you execute these three.

Source: Advertising Research Foundation, 2003

99 Handy Tools to Boost Response

2006-08-02T08:53:00.000-04:00

By Dean Rieck, Direct Creative

Remodeling your home is a unique experience. That’s a polite way of saying it’s an insane process that can make you pull your hair out, but it’s also very educational.

As my wife and I watch our home being demolished and rebuilt, we are learning that a good craftsman always has a massive, overflowing toolbox. No matter what the project or situation, he can plunge his hand into the box and pull out just the right tool.

I think it’s the same for advertising craftsmen. The best always have a "toolbox" filled to the brim with ways to encourage people to part with their money. Over the years, I’ve accumulated thousands of these selling tools and techniques, and I’ll be sharing 99 of them with you over the next several months.

Some are specific. Some are general. Most relate to direct mail. All have proven valuable if used at the right time. Of course, you don’t want to use them all at once, any more than a plumber or carpenter would use all his tools simultaneously. The intent here is simply to help you add to your own toolbox.

1. Relate to your prospect as a person. Everyone wants to be liked, feel good and belong to a group of similar people. So give your package or mailer some personality. If you’re selling to women, show a woman using the product. For men, use more masculine language. For children, be off the wall and playful. Prospects should see themselves in your product pitch.

2. Try to help people instead of just sell them. Going solely for a sale often leads you to dry, overused techniques. But if you make a genuine effort to be helpful in offering your product, you’ll hit the hot buttons. For example, if you’re a bank wanting to increase deposits, don’t just send a letter saying, "Please remember that we offer you many interest-bearing accounts." Offer a free booklet that educates customers about how to use your services, with a title such as "How to earn more interest with your money."

3. Reduce perceived risk. People fear spending too much money on something that won’t work or choosing an inferior brand. Show your prospect that your product is a bargain, that it’s guaranteed and that it’s the best for them.

4. Remove the barriers to buying. People want to buy things. However, if there’s a reason not to part with their money, they won’t, no matter how persuasive you are. The fastest way to success is to remove the physical, emotional and financial reasons not to buy. The toll-free number, for example, did more for selling than any eight-page letter.

5. Be honest and straightforward. Fake invoices, deceptive offers and other unethical techniques often work well, but treating customers like ignorant sheep is bad for long-term success. The way you sell says something about you. If the only way to sell your products is through deception, you need better products. If you’re a solid company with good products, act like one.

6. Avoid mistakes before seeking brilliance. Direct mail profits seldom result from a wild, new creative idea. Generally, it’s the solid, tried and true — even boring — mailings that work again and again, year after year. If you have a groundbreaking format or creative tactic, test it. But don’t get caught up in a search for the Holy Grail.

7. Break the rules now and then. Try two or three separate letters instead of one long one. Try two, three, four or more envelope windows. How about two order forms, each for a different product? Are you serious all the time? For a CD-ROM game, I once wrote a tongue-in-cheek letter that began with "Dear Sucker" and ended with "Insincerely Yours," followed by six separate P.S.’s. When it’s appropriate, loosen up. Have fun.

8. Design your package for chaotic reading. No two people read in the same way. You can’t count on your readers to follow the linear path from envelope, to letter, to brochure, to lift piece, to order form the way they’re supposed to. Make each piece complete with the offer, call to action and ordering information to boost the odds of response.

Mail Use Grows Despite Rate Increase

2006-07-28T15:08:00.000-04:00

By Chantal Tode

March 13th, 2006

Two months after a postal rate increase that averaged 5.4 percent across the board, direct mail quantities have not declined and, in some cases, they're even on the rise, according to several mailing services companies. The U.S. Postal Service, however, says Standard mail volume is growing but is weaker than officials expected.

American Mail Communications, Farmingdale, NY, handled 30 percent more direct mail in January than in the same period last year, president Greg Demetriou said.

"There was not one sector of our mix that took a hit," he said. His shop handles direct mail for advertising, fundraising, marketing and membership clients.

Volume also is up this year at catalog printer Arandell Corp., Menomonee Falls, WI.

"Most [of our catalog customers] have been accepting of this change and are moving ahead with their campaigns," said Don Landis, vice president of postal affairs at Arandell.

Joseph E. Schick, director of postal affairs at Quad/Graphics Inc., Sussex, WI, called the rate increase "a non-issue," adding that "some customers may have pulled back on their mailings slightly, but we haven't seen anything noticeable as a result of the rate case."

From Oct. 1 to Jan. 31, the USPS planned for a Standard mail increase of 4.7 percent, but the actual increase was 1.5 percent. There have been no significant changes to the state-by-state circulation strategies, according to the February issue of Libey Economic Outlook by Donald R. Libey. Intermediate-term and long-term outlooks remain positive, Libey said.

Mailers cited several reasons why the increase has had so little effect, including the relatively low level of the increase compared with previous double-digit raises. However, they aren't as optimistic about the next one.

"It's been four years since we had an increase," Schick said. "And, the 5 percent increase was manageable for most mailers."

However, mailers are turning their attention to the next rate case, which likely will be filed this spring. Because rate cases can take as long as 10 months to be decided, any ruling based on the next case probably would take effect next year. USPS board chairman James C. Miller has said to anticipate a mid-single-digit increase in 2007.

Others fear it may be higher.

For example, all of the postal union and management association contracts expire in 2006, which could influence rates in 2007 and beyond. In addition, while the last increase was an across-the-board rise, mailers this time expect variable increases, if not a full reclassification.

"Everybody is really concerned about what we are going to see in the next filing, and what it is going to mean to everybody in the industry," Schick said.

Another reason the recent increase has been relatively painless so far is that mailing services companies tried to prepare their clients as much as possible.

American Mail Communications got "proactive in the fall and kept in front of clients to remind them of the right way to do things so they wouldn't incur increased costs," Demetriou said. As a result, around November the company started getting phone calls from clients with questions related to design, paper stock and other areas where they could save costs, he said.

In addition, many mailers are making an extra effort this year to have clean, current mailing lists, he said. If they're not, "we're try to tell them that they need to save money and that usually gets their attention."

In contrast, Landis said Arandell hasn't seen a change in the interest in list hygiene as a result of the postal increase.

"Catalogers know the importance of list management, and annually we have seen an improvement in mailing lists," he said. "Whether there is a rate increase or not, all catalogers are looking to reduce costs."

Chantal Todé covers catalog and retail news and BTB marketing and Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters

Senior Editor Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. Reach her at ctode@dmnews,com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting http://www.dmnews.com/subscribe.php

Target Consumers Who Have Money to Spend

2006-07-27T09:40:00.000-04:00

By Jim Koppenhaver, Echelon Marketing Group

July 21st, 2006

Direct marketers face their share of challenges these days. Traditional prospecting is less effective than ever before. Not only is there a limited universe of new names, but regulatory issues and the mandate to do more with less make targeting the right prospects difficult at best. What’s more, consumers across the board are simply inundated with offers of all kinds, often to the point of inertia.

Traditional segmentation techniques used by marketers in all industries include incorporating age, household income, home value and other demographics into segmentation models. And we know that recency-frequency-monetary (RFM) segmentation that is based upon past purchase behaviors also is widely used. The problem is that many of these techniques either have been fully exploited or just are not reliable indicators of a person’s capacity to spend and do not let marketers truly qualify consumers.

According to the 2005 DMA Statistical Fact Book, only 37 percent of companies rated household-level targeting models as “very effective.”

Even the best marketing model falls short when it relies only on income, geography and other quantitative information. To make the most of their budgets, marketers must look to information that provides a deeper understanding of consumer needs, wants, propensities and ability to purchase.

Are marketers getting their piece of the consumer-spending pie using traditional segmentation systems? Probably not. Today’s technology offers much more. The solution? Focus on discretionary income.

Marketers have a new way to identify and target potential customers. The starting point is to understand an individual consumer’s capacity to spend, a reliable and important indicator of the likelihood to buy. Capacity to spend depends on discretionary income.

Discretionary income consists of the funds remaining after consumers take care of essentials such as food, clothing and shelter. As Abraham Maslow, the psychologist who created Maslow’s Hierarchy of Needs, suggests, it is only after those needs are met that people consider how to use their remaining discretionary dollars based on their interests and their lifestyles.

Measures of typical gross household income tend to be unreliable and do not target consumers effectively. Marketers instead must focus on assets and discretionary income, not simply gross household income. The shift in focus must be toward the dollars that are left after income comes in and money spent on basics and essentials goes out. Without an understanding of a prospect’s ability to purchase, no amount of persuasive copy, award-winning graphics or hard-to-beat offers will yield results.

There are tools that can be used to segment, prioritize and target current and prospective customers based on their true ability to buy, viewing wealth based in part on liquid asset factors, not just income. The objective is to rank consumers based on spending power and combine it with propensity data.

To understand why this is important, consider two households with the same income, say $150,000, and that are in the same life stage. These two households have substantially different spending power and patterns depending on their tastes, attitudes, where they live and their financial asset base. If one’s dominant asset is their home, for instance, then that household is less likely to make a major purchase than the household whose dominant assets are liquid. These are the factors that determine what each consumer can afford to buy and on what products and services consumers choose to spend their money.

The key is to identify, segment, target and communicate with those households that are most likely to have the ability to buy — and to determine those households with limited spending ability. This lets direct marketers better allocate precious resources and target those consumers who are truly worthwhile prospects.

With such a segmentation approach, marketers can:

• Precisely target prospects with the ability to buy a particular product or service.

• Rank current customers based on purchase capacity.

• Enhance customer profiles by combining spending power with transactional history.

• Customize offers and marketing messages based on the purchase capacity of each audience segment.

• Identify valuable new prospects.

• Avoid contacting prospects with low or no purchase capacity, thereby decreasing marketing costs while increasing average purchase amounts.

All marketers, regardless of industry, can benefit from a focus on discretionary spending. It starts with acquiring and applying actionable information that can help reveal those prospects and customers who have not only the interest to buy, but also the discretionary funds to make the purchase.

Beer is Back as U.S. Drinkers' Beverage of Choice

2006-07-26T08:20:00.000-04:00

Latest Gallup Poll Results: 41% Prefer Beer vs. 33% Wine

By Jeremy Mullman

Published: July 25, 2006

CHICAGO (AdAge.com) -- Beer may have some life left yet.

Last summer, as sales tanked, many of the frothy beverage's obituaries were sourced to a poll conducted by the Gallup Organization that found beer was no longer the beverage of choice for most Americans, who more frequently drank wine (39%) than beer (36%).

Gallup findings
But, in a reversal, the just-released Gallup poll this year found that beer is again the beverage Americans drink most often, beating wine by a 41% to 33% margin. (Liquor, however, climbed to 23% from 21% last year.)

"We think this is a real sign that things are starting to turn," said Bob Lachky, VP-global industry development at No. 1 brewer Anheuser-Busch Cos. "This is a reflection that, in terms of real sales, people still look to beer more often."

Image revival
After last year's Gallup data was released, Mr. Lachky led an effort at A-B to revive beer's image through the "Here's to Beer" ad campaign, which emphasized the social value of the beverage. TV spots directed by Spike Lee asked celebrities such as "Sopranos" star Michael Imperioli and sportscaster Joe Buck who they would like to have a beer with. The effort included an internet component as well.

A-B invited rivals Miller Brewing and Coors brewing to participate in the category push, but both declined, figuring, correctly, that A-B -- which has a nearly 49% share of the U.S. beer market -- would wind up funding the ads anyway.

No hard sales data
Mr. Lachky said he saw the latest Gallup figures as a sign the campaign is succeeding, although he acknowledged that he has yet to see any actual sales data suggesting beer is regaining share from wine and spirits.

"We are getting some indications that hard liquor's share is flattening a bit," he said. "But it is a little premature to say beer is growing share back."

Planning For Fall

2006-07-25T17:51:00.000-04:00

I can hear it now. "What are you talking about? Didn't summer just get here?" That is true, but as business owners we have to think and plan 2 to 3 months ahead.

It will soon be time for school to start. Even though a year officially begins in January, for families the year begins with the start of school. And for the next nine months their lives will focus on what the children are doing. Here are some ideas to help you place your business promotions where your customers are focused.

1. When school begins, parents are looking for other types of classes for their children - music, dance, karate, etc.

2. Many will also be looking for tutoring classes to help their kids succeed in school.

3. If you haven't already, plan your end of summer / beginning of fall sale. You need to clear out summer to make room for the Holidays.

4. Think about planning a fall event around Halloween. You can do this on your own, but it is it is more fun (and successful) if it can be sponsored by your shopping center. (A fall event can also be planned around a local football team.)

Study: Local Retailers Missing Opportunity In New Residents

2006-07-24T07:35:00.000-04:00

By Chantal Tode
July 24th, 2006

Targeting recent movers can be an effective way for local retailers to replace the 20 percent to 40 percent annual customer turnover rate they typically experience, yet most never contact new residents directly, according to a new study released by direct marketing firm Moving Targets, Perkasie, PA.

A minimum of 20 percent of customers leave a merchant in any given year, according to the report, “How to Overcome Retail-Customer Erosion by Capturing New Residents.” However, 80 percent of new movers are actively searching for a new business to which they can be loyal. This coupled with the fact that most of America moves every five years on average represents a significant prospecting opportunity for local independent businesses.

The study reports the following about new movers: 62 percent eat pizza; 65 percent of female new residents are anxious about finding a good hairstylist; 67 percent say it’s difficult to find an honest auto repair shop; 80 percent redeem gift certificates offered by local merchants and 98 percent appreciate gifts or offers from local merchants.

Because people typically move as a result of a major life transition -- marriage, new job, birth, retirement and divorce are common reasons -- new residents are often faced with a host of new challenges, the report states. They can be lonely, unsure and looking to replace severed social and community connections.
According to research from the U.S. Postal Service cited in the study, an estimated 80 percent of new residents will try new products and services from local business during the first 24 months after a move. On average, new residents spend $7,100 for goods directly attributable to their relocation.

Senior Editor Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. Reach her at ctode@dmnews,com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting http://www.dmnews.com/subscribe.php

Train Them Well

2006-07-21T09:42:00.000-04:00

Making sure your employees are trained well not only serves the customer, but makes employees feel like an important part of the operation. Good training encourages better service.

Here are some Do's and Don'ts of Training

Do offer different ways to learn -- different styles or time frames.

Do cross-train -- it helps employees not feel penned in because there's only one person in the store who knows a procedure.

Do go to trade shows and seminars. Read trade publications so you can keep current and bring in new material.

Do make sure that everyone has consistent training objectives and don't just teach what they want rather than what they need.

Don't assume that the person you're training knows anything.

Don't make it too long. Information dumps are not very effective. There are different learning styles, consider making it interactive so people will remember and use it.

Don't think that everything you put out there is good forever; technology and methods are always changing.

Source: Ripley Hotch, Area Developer Issue II, 2006

Clippin' Coupons

2006-07-20T21:01:00.000-04:00

Clippin' Coupons

By Erik Gunther

Wed, July 19, 2006, 4:58 pm PDT

Grocery Shopping

It never hurts to save a few pennies, especially when prices are going up. Some of us frequent restaurants that offer free soda refills, others make a dinner out of free buffalo wings and peanuts at happy hour, and some of the more savvy among us clip coupons. These scraps of paper come in handy at the supermarket checkout line, and searches on "grocery coupons" jumped a whopping 190% yesterday.

But the grocery store isn't the only spot for savings—searches on plain ol' "coupons" rose 40% as well. Maybe we're all in a belt-tightening mode, or perhaps we're trying to stick it to "The Man" in any small way we can. Either way, we present the top 20 coupon searches over the last week...

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