Archive for March 17, 2010

Get It Done!

Many people enjoy swapping stories of disasters, but the “saves” are so much more common. Mailing professionals often catch errors on a proof, suggest a redesign that saves handling or postage, fix mistakes on printed pieces with creative ingenuity and maybe some stickers, notice that the list is wrong, catch a huge number of duplicates, and work overtime to get the mail out in one day!

There are so many times when others in the chain (project leader, artist, layout, printer…) run into challenges and time delays. When the pieces are finally off the printing press, the deadlines have all been missed and keep slipping and all of a sudden we are a week away from “it” (a major sale, an event, the end of the month…). Then somehow, someway we as your direct mail shop get the mail to the post office and the pieces get delivered right on time.

What are you doing to survive and thrive right now? Do you still have the ‘git-er done’ attitude?

Creative Planning To Strengthen Your Marketing

Target Marketing Magazine included some great tips and considerations for creative planning as a part of suggestions for campaign planning meetings. We want to help you think about these as you plan your Direct Marketing.

The Offer

Remember, an offer can be a full-price product with special value.

  • Why was it created?
  • What problem will it solve for your customer?
  • What are we asking the customer to do?
  • What is the overall strategy?
  • What are the goals in terms of response rate or overall sales, and how is the offer going to help reach those goals?

The Audience

  • Who is getting this piece, and what is his relationship to your company? The message that you send to a customer should be drastically different from the message you send to a prospect, who may not even know who you are.
  • Think about the individual person behind the demographics. What will motivate him? What is his attitude toward what you are selling?
  • What key words can you use to speak directly to his needs?

The Brand

  • Your brand isn’t your logo; it’s the consumer’s perception of your company. How can you remind—or for a prospect, introduce—the recipient of your unique point of differentiation?
  • How can you prove that you are delivering on your brand promise?
  • What words and visual cues can you use to reiterate your brand?

The Format

  • What is the format, and why was it chosen? This is especially important to explore when using a solo package including multiple components. Explore each component, discussing the hierarchy of each piece.
  • Can the format be improved? Your production manager may be able to explain important options and opportunities as ideas are generated.

The Creative

  • What visuals will help grab attention and quickly explain your offer?
  • Where are the hot spots in your format, and how will you use them to your advantage?
  • How will you exploit an offer and make sure it is seen?
  • How many times will the offer be repeated and where?
  • How will the recipient process the piece—what will he look at first? If it’s a mailing, how will the envelope entice him to open it? If it’s a postcard or e-mail, how will you identify or introduce yourself at a glance and answer for the consumer, “What’s in it for me?”
  • What copy will intrigue the reader the most?
  • How much copy will be required and at what ratio to images?
  • How can you show value in every product? Is it necessary to include additional insets or callouts to showcase benefits?
  • Review the creative and production schedules: Who will work on the piece first; who will work on it second?
  • What is the proofing and editing process?
  • Together, create a list of must-haves: phone number, URL, fax and registered trademarks.
  • Are multiple versions necessary to accommodate different 
customer segments?

There is no guarantee that your project will run smoothly from beginning to end, but with the right planning—an understanding of the offer, audience, brand position, format and creative strategy —you have a head start. Take the time to talk through all of these points before the design process begins, and your program will generate better results.

Feature the Flaw

Scott Anthony recently wrote a post for the Harvard Business Review on disruptive innovation.

Turning a flaw into a feature is a time honored tradition in the software industry. “It’s not a bug, it’s a feature” dates back at least to the mid-’80s. Turning bugs into features is also a critical skill of the would-be disruptive innovator.

The heart of disruptive innovation is the intentional trade-off — sacrificing raw performance in the name of simplicity, convenience, or affordability. The trick is finding the customer who embraces this trade-off because they consider existing solutions to be too expensive or too complicated.

In other words, disruption is almost always a strategic choice. Companies with a would-be disruption on their hands have to carefully consider their target customer.

Consider, for example, what would have happened if Procter & Gamble had tried to sell its Swiffer line of quick cleaning products to people obsessed with deep cleaning. Those consumers would have looked at a product designed to clean without sweating as inferior. In fact, Swiffer initially struggled in markets like Italy where consumers considered sweating an integral part of the cleaning process!

Instead, P&G sought customers who embraced simplicity, because often their choice wasn’t a deep clean or a quick clean, it was a quick clean or no clean at all. The “flaw” of light cleaning was a “feature” to the simplicity seekers.

Featuring the flaw often requires looking at markets in new ways and finding seemingly invisible customers. Some simple questions to use to guide thinking include:

  • What are the competitive alternatives to your idea?
  • Where are you better?
  • Where are you worse?
  • Are there people who consider existing alternatives out of reach?
  • Are there circumstances where using existing alternatives problematic?

The next time someone tells you to a fix a potential flaw in your idea, flip the problem on its head by seeking a customer that would consider the flaw a feature. Does this spark any ideas for your marketing? Is there something about your product or service that you can turn into a great feature?

Direct Mail Hot Spots

Target Marketing Magazine published a great article a couple of years ago about how readers eyes move around a mail piece. We all do this so many times without thinking.

A hot spot is where your eye goes first when you look at a postcard, outer envelope, catalog spread, direct mail letter, space ad or even an e-mail.

Most of us had our first experience with hot spots in elementary school when we looked for easy ways to study for tests. We wanted to pick out key points to review without reading entire chapters. What did we do?

We looked at chapter titles, subheads, terms in boldface type, maps, charts, graphs, photos, and the captions under them. In other words, we looked at hot spots. From this experience, we’ve trained ourselves to look for eye-grabbing design and copy elements. We use these signs for scanning copy and deciding whether or not we’ll read the rest. Here are 10 things every direct mail writer, designer and approving manager should know about hot spots; nine tips for putting these road signs in action; and six techniques to avoid.

What You Need to Know

  1. All formats have hot spots. This applies to postcards, self-mailers, letters, envelopes, brochures, order forms, catalogs, e-mail, space ads and even buck slip inserts.
  2. Some hot spots are innate to the direct mail component in which they’re found, such as the return address on an outer envelope or the saluation or P.S. in  a letter. (Did you know 30 percent of the people read the P.S. first?)
  3. Other hot spots are created to capture and direct the reader’s attention, such as the dot-whack teaser on an outer envelope or corner slash on a catalog cover.
  4. Outer envelope hot spots include: corner card/return address in the upper left-hand corner, addressing, postage, teaser copy on front or back and the back flap.
  5. A checklist of letter hot spots include: letterhead/masthead, salutation, first sentence, first paragraph, Johnson box area in the upper-right corner, last paragraph, signature and title, P.S., P.P.S., P.P.P.S., copy underlined or indented, bulleted, or boldface copy, indented subheads, and handwriting in the margins.
  6. Hot spots are useful for controlling eye flow. For example, if someone reads only three things in your letter, which three things do you want him to read? And how can you use hot spots to make sure they get read?
  7. You have three seconds or less to grab your reader’s attention; hot spots are critical for quickly getting the reader involved in your mail piece.
  8. Direct mail designers use type fonts and sizes, background colors, borders, violators, copy placement, images, callouts and other graphic tools to create hot spots.
  9. Direct mail writers create compelling hot-spot copy using the words “you” or “free”, customer testimonials, major benefits, strong calls to action, action verbs at the start of sentences and headlines, and other direct response techniques.
  10. Hot spots are a team effort; writers and designers need to work together to make them effective.

Hot Spots in Action

  1. Add a person or group of people to the photo of your office building or store, and you’ll transform the photo into a more interesting hot spot. The eye naturally is drawn to photos that include people or human elements, such as hands, feet or eyes.
  2. Double the impact of photos by adding captions. When your reader looks at a photo, he or she looks below the photo for a caption. Use captions to highlight major benefits, focus on points of competitive differentiation or provide a strong call to action.
  3. Create hot spots that break up long copy by using headlines, and subheads, photo captions, bullets, violators, testimonials, sidebar stories, charts, icons drawing attention to phone numbers and URLs and callouts. Rarely is a letter, brochure, insert or order form read from top to bottom, start to finish. Readers look for copy interests them in bite-size pieces.
  4. Use hot spots on response devices to restate benefits, showcase your guarantee, restate the call to action and response options, provide methods of payment, and offer shipping options.
  5. State and restate major benefits in hot spots so your benefit story won’t get overlooked.
  6. Position your major benefit at the beginning of a sentence, paragraph or headline. Don’t bury it in the middle.
  7. Do not color-coordinate every component in your mailing. Instead, use a bright yellow free gift insert or fluorescent-orange burst to highlight a customer testimonial in your letter.
  8. Use hot spots appropriately. They don’t necessarily have to be big or bold. For example, the salutation of a letter doesn’t need to be large, colorful or even personalized to draw the readers eye to draw the readers eye to it. It’s a natural hot spot. However, it does need to be appropriately accurate to establish a rapport between the individual receiving and the person signing the letter. Used appropriately, “Dear Friend” and “Dear Preferred Customer” can both be equally effective. Be very careful with “Dear Sir” it is not appropriate or effective with women.
  9. Use hot spots strategically to gently move the reader’s eye from one place to another. Don’t fill your outer envelope with bright bursts of copy and expect it to get read. Too much of a good thing is not a good idea.

Words of Caution

As much as hot spots encourage scanners to become readers, there also are techniques that stifle readership. In most cases, you want to avoid:

  1. dense copy blocks filled with long sentences;
  2. large amounts of copy in difficult-to-read red or reversed-out type;
  3. long headlines in all caps;
  4. gray-screened backgrounds for copy;
  5. body copy in smaller than 10-point type and/or in sans serif type; and
  6. justified copy that creates odd word spacing.

How else can we inspire you to lead your readers eyes with Direct Mail?

Ideas to Define Your Brand

We have posted a few articles about branding and why it is so important in marketing. We thought it might be helpful to suggest some ideas to help you refine and define your brand.

What is a brand?

  • the outside view of the company, product or service.
  • the sum of all relationships between buyer and seller.
  • the most important asset that the organization owns.
  • the symbolic embodiment of all the information connected with a product or service.
  • the set of expectations associated with a product or service.
  • what leads customers to choose you over the competition.

Questions to get your thinking started

  1. What do your employees think sets your company apart?
  2. What is your company best at?
  3. What are your core strengths?
  4. What do you offer that one else offers?
  5. What do you love about your business?
  6. What makes your employees proud?
  7. Why has your company been able to stay in business when others have failed?
  8. If your company were to close, how would you want to be remembered?

Every contact or interaction with your customers and prospects is an opportunity for you to communicate your brand

  • Sign
  • Building
  • Letterhead and business cards
  • Packaging
  • Company vehicles
  • Staff attire
  • Advertising
  • Direct Mail
  • Web site

What do people (customers, prospects, audience) experience with your:

  • Product or service
  • Pricing
  • Customer service
  • Employee attitudes and actions
  • Atmosphere of your place of business
  • Role in the community

Now that you have a clearer idea of who you are and what you are all about, how can we help you share it? Direct Mail is a great way to reach the people who most want to hear from you.

Help Your Brand Stand Out

Andrea Syverson suggested some ideas in Target Marketing Magazine to get you started in your thinking about how to differentiate your brand.

We like to cheer for the underdogs, they try harder. These “underdogs” seem more comfortable in their own brand skins. They are original. They are daring. They are independent thinkers.

What about your brand? I bet your customers know the answer.

Stand Out from the Crowd

What are the differences between the many companies jockeying for customers’ minds and market share these days? Is there a difference between OfficeMax, Office Depot or Staples? What differentiates Barnes & Noble from Borders?

What is different between your offering and your top two competitors? If your brand is sandwiched blandly between others, it’s time to rethink both your brand positioning and your merchandising concept. Don’t bore your customers with this sea of sameness. They deserve better.

There is no formula for authenticity. Either you are authentic or you’re not. Unfortunately, we have become accustomed to living in a faux society, where entertainment is disguised as news, celebrities are disguised as heroes and Internet connections are disguised as relationships. And, yes, there are faux brands and transaction-based companies focused on themselves and short-term profits.

In “Authenticity: What Consumers Really Want,” authors Joseph Pine and James Gilmore propose that authenticity is a completely new management discipline, and they outline three axioms for authenticity:

  1. If you are authentic, then you don’t have to say you’re authentic.
  2. If you say you’re authentic, then you’d better be authentic.
  3. It’s easier to be authentic if you don’t say you’re authentic.

This may seem simple, but it isn’t. Many brands fall back to being faux. It’s easier.

Authenticity in Action

Consumers crave the real deal. They desire companies that deliver on their promises and brands that listen and do what their taglines say they do. They seek independent thinkers, product creativity and originality in solving their problems. They want brands that respect their time.

Authentic companies have one thing in common: They are true to themselves. They beat their own drums. And, most importantly, their customers thank them for it.

Steven Covey, best known as the author of “Seven Habits of Highly Effective People,” writes:

The more authentic you become, the more genuine in your expression, the more people can relate to your expression and the safer it makes them feel to express themselves. That expression in turn feeds back on the other person’s spirit, and genuine creative empathy takes place, producing new insights and learnings.

We believe the same is true of brands. Authentic brands are infectious. They draw people in. Authentic brands stand out. Authentic brands feed people’s spirits. They give customers what they crave today: realness.

So, how can we help you communicate your authentic brand message?

Direct Marketing Math

Direct mail and direct marketing are all about results and return. Hopefully finding all these formulas in one place is helpful.

Response Percent                     =          (responses / mail quantity)  X 100

Raw Cost Per Response          =          cost per package / response rate

Break Even Response Rate    =          cost per package / cost per response

Average Order                           =          sales dollars / number of orders

Loaded Cost Per Response    =          (cost per package / response rate)  +  fulfillment  +  telemarketing

Profit per Buyer                          =          profit dollars / number of buyers

Marketing Cost Per Order        =          marketing cost / number of orders

Load Cost Per Sale                  =          cost per lead / closing rate

Maximum Package Cost         =          cost per response  X  response rate

More For Less For More

In an interesting Harvard Business Review post by Navi Radjou, Jaideep Prabhu, and Simone Ahuja, the authors discuss an emerging trend. More for Less for More (M4L4M) is a strategy that places an emphasis on delivering more value for less cost for more people.

More for More, the current approach taken by many Western firms, charges customers a hefty premium for often over-engineered products. Less for More is China’s low-cost strategy of creating stripped down products that cost less and manufacturing them on a large scale for global markets. Unlike these two approaches, M4L4M offers firms a new way to reconcile multiple, seemingly contradictory financial equations: deliver more experiential value to customers while simultaneously reducing the cost and delivering that value to a greater number of people.

Entrepreneurs are learning to extract more value from limited resources. They are embracing creative mindsets practiced by resource-constraints to invent affordable and sustainable solutions that deliver more value to more people at less cost. As a forward-thinking business leader, what can you redesign within your organization to deliver more value at less cost for more customers? What are you doing to meet the needs of increasingly frugal but demanding customers in a world of scarcity?

How about marketing? Are there new ways to communicate more for less for more? This is another time to consider direct mail.

E-Mail Open Rates

This subject line, “Study: E-mail open and click-through rates up in Q4” from BtoB Magazine has us wondering, is this irrational exuberance? They seem to be ecstatic about open rates of emails being up in the fourth-quarter of last year to 22%, up from 20.9% in the fourth quarter of 2008. The study also found click-through rates were up marginally, from 5.8% to 5.9%.

Can we step back and think about this? This means that 78% of the people on your treasured, valued, opt in list do not even open your message. So that means that 94.1% of those same loved customers or prospects are not going to your landing page, they are not engaging with you, they are not seeing your appealing message. For some reason we hear many people wanting to compare these metrics with response rates for direct mail. What is a positive response for mail? A sale! That would be revenue generated as a result of your customer or prospect receiving information from you.

E-Mail has its place as a part of a larger strategy, but if it is your only method for reaching new customers or reactivating dormant customers, you may miss your potential.

Strengthen Your Brand

Andrea Syverson recently asked some great questions for readers of Target Marketing Magazine.

Questioning is the precursor to innovation. Alfred North Whitehead, a British mathematician and philosopher, said, “The ‘silly question’ is the first intimation of some totally new development.” After years of questioning, there really are no silly questions.

Even Jerry Greenfield’s (of Ben & Jerry’s fame) lighthearted question, “If it’s not fun, why do it?” is one of utmost importance to its brand. Fun is an attribute at the top of Ben & Jerry’s brand and product fit charts. It is even a tab on the Web site.

In 2003, Frederick F. Reichheld wrote an article for the Harvard Business Review called “The One Number You Need to Grow.” His research showed if brands concentrated on improving just one measure, it should be the answer to this question asked of their customers: “How likely is it that you would recommend our company to a friend or colleague?”

Author James Thurber wrote, “It is better to know some of the questions than all of the answers.” What other questions is your brand grappling with, or perhaps should be grappling with, these days?

Try these steps to get things going:

Create an Environment for Questions. First, do you cultivate a question-asking environment? Without the freedom to raise questions or question decisions appropriately, your brand may have a blind spot.

Question to Build Loyalty. Secondly, can you handle the answers to tough questions? Many brands have solid customer loyalty programs in place. These are indeed important parts of retention strategies. But take a moment to turn that question around for your brand—just how loyal is your brand to your customers? What have you done for them lately?

Listen Up. Thirdly, what are your customers’ pain points? What makes them mad, frustrated or just plain tired in relation to your product, service, category or overall brand experience? If you spend time uncovering these issues and then creatively addressing them, both your customers and your competitors will take note.

There are many examples of product/service/experience rage out there. Are companies listening? Do they care?

So, take some time to question your culture, your customers and your results.