Archive for April, 2010

Preferred Customer Communication

April 30th, 2010

Beg, borrow, or steal, smart businesses today must find a way to log and measure the “medium of choice” for their business customer/prospect to communicate and stay connected.  With the constant bombardment of advertising messages both from vendors and potential vendors, good business practice involves blending and balancing both the introduction and the reminder messages without creating customer bane.

Google search, telemarketing, Google adwords, facebook, LinkedIn, direct mail campaign, banner ad placement, online lead aggregator, press release, conference booth, print space, email campaign, door-to-door, or just drive-by traffic….all have a the possibility of becoming your next great source for leads.  These leads are vital to the growth of your business and to measuring the success of the lead generation source.  That is why it is vitally important that you stay connected and do so in the right way.

Chances are, if you’re like most companies, you’ve tried a variety of the above and have measured varying degrees of success.  The challenge is that most businesses serving other businesses have a segmented customer base.  Sure, you can append SIC codes to your customer database, but that doesn’t account for how the best medium for a given decision maker at those businesses.  Here are some suggestions on how to identify what your best communication channel is for your business to business prospect/customer.

Ask them for permission – Simply ask them for permission to call or email from time to time.  And always ask permission for frequency.  Many sales representatives are aggressive with new prospects.  They call weekly to bug their prospect.  This certainly works for those prospects who don’t mind the calls, but for the others, a trail of disgruntled prospects will avoid you and others at your firm.

Ask them for their preference – All communication should be asking them for permission.  This request empowers the prospect/customer and provides develops loyalty.

Track how your customer found you – Did your prospect first connect with you via phone, email, social media account?  Their first contact is likely their preferred medium of communication.  Make note of this in your CRM system.

Do what they do – If they call you before sending an email, call them before sending them an email.  If they always send detailed notes within an email, do the same for them.  Take their lead on what they do when communicating with you.

As with all your valuable bits of information, keeping track of this stuff is vital.  Make sure you and the others are tracking how your prospects and customers want to stay connected.  Doing so will help others in your company connect with your customer and foster loyalty.

If you would like help with developing sales leads, or managing them, BB Direct can help.  Give us a call or visit us at www.bbdirect.com.

SNS Marketing as a Viable Direct Response Medium?

April 23rd, 2010
Direct Response

Direct Response

It seems SNS (Social Network Site) marketing is “all the craze” lately.  I’m told and read about the various ways a business can add a page, invite fans, point them to the corporate website, and sell products and services.  But when it comes down to the time investment required to launching a SNS campaign, I’m not so confident there’s a potential for profit just yet.

Take my Facebook account as an example.  How many of my fans will visit my page and say, “hey, I didn’t know he was in the direct marketing business and I actually need a mailing list”?  Perhaps one could build an interesting and fun game like the Facebook farm game I see FB newsfeed.  Once the agriculturally inclined mob is playing the game, pop-up ads could an invite them to visit the produce section of their local grocer.

LinkedIn is used more for professionally driven endeavors.  There seems to be more business owners, entrepreneurs, sales representatives, and job seekers lurking around on this SNS.  So my blog post is linked in LinkedIn (been wanting to say that for a while now :-) ).  Can I get a raise of hands for those who found me through LinkedIn?  Anyone?  Can we do some business together?

Viable direct response medium?  For the vast majority, I don’t see it yet.  I do appreciate the allure of Facebook with it’s now 400,000 members, and can see how others get sucked into the fun of finding friends, but with the additional precious hour a day needed to keep up with all my connections, I just don’t know how we business professionals are to capitalize on the Social Network Sit frenzy.  Do you disagree?

Need A Good Mailing List? Read This First!

April 19th, 2010

Know your customer
The absolute best way to understand your best prospects is to understand your current best customers.  You as a business owner can describe in detail what your customer looks like based on his or her attributes and need for your product or service.  But the key here is to be able to describe your customer in terms that are relevant to a mailing list broker.  If a mailing list broker is unable to build a criteria set that describes your best customer, then no matter how well you’ll be able to describe this person, you won’t be able to find more just like it.  As an example, let’s say you’re in the business of selling high-end office furniture.  You may describe your best customer as one who desires to have the most cutting edge modern attractive desk-system on the market.  Your customer may buy your office furniture products because they want to impress their clientele.  Your office furniture is a direct reflection of what your customers want their clientele to think of them…modern, classy, cutting edge.  Though this is a very clear description of what why your clients might buy your products over the competitor, the description is better suited for the direct mail marketers’ creative team that will assemble a congruent message and offer to your direct mail prospects.  A better description would sound something more that this.  “My customers are businesses such as law offices, CPA’s, Real Estate investment trusts, and a personal banker whose business employee’s greater than 50 employees’.  These customers businesses that are both new and established, but the decision maker is usually the owner located at the headquarter location.”  Notice the identifiers that describe this business clientele are consistent with the filters available from a business mailing lists database.

Provide your mailing list broker with an accurate description of your product or offer. The broker may have suggestions as to the type of list that would best suite your needs.  Most mailing list brokers can offer suggestions based on the available selects of the databases they typically use.  If you’re unsure of the filters (selects) available on a particular database, your mailing list broker should be able to offer you a data card that describes in detail these selects as well as the pricing for these selects.  In summary, a well informed list broker has a greater chance of helping his direct mail marketer.

Response vs compiled mailing list
Response mailing lists are comprised of individuals who have responded to an offer either through the mail, phone, and television or through other means of mass communication.
Compiled mailing lists are a compilation of information from public records and sources such as the phone book, courthouse records, bankruptcy filings, mortgage deed records and more.

The more you understand the differences with the various available mailing lists, the better you’ll be able to use them to your advantage.  The primary reason for understanding the difference between these two mailing lists is because the compiled mailing list will naturally contain more records per a given geography.  Should your market territory be finite, the available compiled mailing list data will be larger in number than the response file type mailing lists.  Likewise, if your market territory has no boundaries, your ideal mailing list is one in which those individuals have already responded favorably to an interest or offer such as yours.  Though the mailing list data usually costs more, response files are typically considered more responsive.

Database analysis
The more you know about your internal mailing list of customers, the better you’ll be able to communicate to them.  A database analysis is a process where by you provide your customer names and addresses be evaluated.  The process is completely automated and relatively secure.  What is done is your internal customer mailing list is passed against a large universe mailing list.  This universe mailing list contains all the deliverable addresses within the U.S.  This mailing list database contains not only the name and the address, but also any demographic and psychographic information available on the records.  Wherever there is a match of the two mailing list databases, all the relative elements of information is temporary appended to your database.  The processor then looks for patterns within the appended data for what kinds of mailing list conclusions can be made.  This profile “snap-shot” is then compared with the “profile” of the resident consumers within the same market territory of your mailing list.  Ultimately, we are looking for a comparison of what your customers “look like” relative to the people in the same relative area that are not your customers.  We are also looking for how your customers “look differently” from the surrounding population.  The more we can tell about your customers the better.  Ultimately, we want to find other people within the area that are not customers but look identical to them.  The theory is that if we were to mail to those people who look most similar to your existing customers, the better changes are that they will become customers themselves.

Mail piece versioning
Understand your customers’ needs and desires and speak to them in a manner that is specific or special them.  Not all people are the same.  Imagine walking to your own mail box tomorrow afternoon.  You reach in and find a postcard inviting you to a new restaurant in your area.  We’ve all received these types of postcards with some that appeal to us more than others.  What would this post include that would truly grab your attention?  The answer to this question is most likely different for you than it is for your neighbor.  For a young family, the piece might include a picture of a happy family enjoying a dinner out together.  The copy highlights the importance of getting the family out together and how this new restaurant caters to family dinning.  For a middle aged successful single female professional, the same mail piece may be a turn-off and would be quickly tossed in the trash.  But should the postcard include a photo of a group of other like aged singles enjoying dinner together with an emphasis on entrée’s that peak the interest of the most sophisticated palate, this mail piece might entice the single female to the very same restaurant as the young family.

With today’s variable print technology, each mail piece can be different in accordance to the recipient of the piece itself.  The customization can be as different as the graphic designer is willing to make it.  And generally speaking, the more your mail piece is versioned to the targeted audience, the better your direct mail response will be.  The ideal mailing list for such variable print mailings a “segmentation” type mailing list.  Segmentation mailing lists classify people into naturally occurring subsets of the population.  A restaurant’s market territory might include a 10 mile radius and within this territory, there might be 12 primary segments of the population.  Mailing the same general mail piece and offer to all 12 segments is less effective than mailing 12 versions of the same mail piece.

Response measurement
It cannot be stressed enough to design a response measurement mechanism in your direct mail campaign.  Without measuring how many responders or orders have been achieved as a direct result from your direct mail investment, you will never know how effective this investment is as it compares to other advertisement mediums.  Direct mail measurement can be measured several different ways, i.e., responders, buyers, foot-traffic into the store location, actual gross revenue directly attributed to the campaign, gross profit directly attributed to the campaign, and the potential lifetime value of the responders/buyers/donors of a campaign.  Whatever the method of measurement, quantifying your response will help both in justifying a second test campaign to ultimately investing more or less into direct mail marketing.

Auto Dealership Direct Marketing Data Choices

April 19th, 2010

The Shelby Bill Explained
In June of 2000, the Shebly Bill was put into law which changed the way marketers are were able to use current Department of Motor Vehicle database information. Though the DMV data is still readily available for research purposes, one can no longer identify specific car owners from this database and mail to them.
The Shelby Bill did leave some use of this data still intact. It allows “pre-Shebly” data (DMV data made available prior to June of 2000) to continue to be used, and it also allows the current DMV to be used to create predictive models to build a “look-a-like” database that attempts to get close to the real thing.

The passage of this bill has spawned a number of new data products for the auto direct mailer.

Polk’s Auto Data Product Line

Auto Garage Predictor
The Garage Predictor is an attempt to predict what kind of vehicle a consumer currently owned. This product was created in an attempt to replace the DMV data that was removed from the Shebly Bill passage of 2000. It is created by using current DMV data and creating a predictive model and is said to be approximately 85% accurate. This product is widely popular among auto dealers, is available in all states, and is the closest auto dealers can come to the true auto ownership data from the DMV.

Target Purchase Predictor
The Target Purchase Predictor is an attempt to predict what kind of vehicle a consumer might be in the market to purchase. The data product incorporates a number of additional elements than the Garage Predictor. It looks at the patterns of car purchasing and how people purchase vehicles in succession throughout their life span. This product can also be incorporated with two other interesting features; the Auto Exclusion and the Score Predictor.

• The Auto Exclusion takes into consideration that if a consumer has just purchased a vehicle in, say, the past 12 months, they are likely not going to be in the market today and should be removed from the mailing.

• The Score Predictor takes into consideration a modeled credit score identifier that clusters those lowest credit score individuals and removes them from the Target Purchase Predictor query. Those lowest score below 550 may look as though they are in the market to purchase, but they too will have trouble in the finance department.

Actual Credit Score
Often referred to as Credit Mailers, the use of credit is popular among auto dealership mailers. This is because it focuses only on those potential candidates who will qualify for the financing. There may be less foot traffic in the showroom but there’s a far greater likelihood that if they apply for financing, they’ll be approved.
There is one caveat with the use of credit score data and that is that the mail piece must include a “firm offer of credit” as well as disclaimer information noting the opportunities for the mail recipient to “opt-out” of receiving this kind of direct mail solicitation. Your data consultant can describe how the rules apply in greater detail, but be sure not to print your mail pieces before it is approved for credit data.

Modeled Credit Score
For those auto dealerships not interested in making a “firm offer of credit”, a watered down version of the actual credit score is the Modeled Credit Score. This product uses actual credit score data to make a prediction of what other individuals credit score might be. With any predictive modeled data product there will be a degree of error associated with score accuracy. Direct mailers using this product should never use it with a “firm offer” mailer.

Make / Model / Year Self-Reported
Since the Shebly Bill only pertains to the DMV data, other means of collecting automobile make / model / year built data can be used for direct marketing purposes. Self-reported data is captured when the auto owner him/herself declare their vehicle ownership. This is usually done with a 3rd party who makes this data available for a fee. Oil change service centers, auto parts stores, online website survey’s, etc are all examples of self-reporting type 3rd party originators. Collectively, the database of self-reported vehicle owners is still not very large relative to the true number of vehicle owners in the U.S., but as the number of contributors continue to grow, so does the size of the database.

Resident / Occupant
Resident Occupant database information is a saturation level database made available in walk-sequence. The database contains every deliverable household, business, and Post Office Box in the U.S. Since people are constantly relocating and keeping track of their names is difficult, the Res/Occ file doesn’t include names, but instead will include the title “RESIDENT”, or if you prefer, “Dear Car Buyer”, or what have you. The beauty of this database is that since it is every household, and sorted in walk-sequence, the USPS provides a discount on postage when using this data. It is also the lowest cost database available. These two attributes make it very attractive to many mailers wanting to mail to everyone in a given market territory.
Some auto dealers in rural area’s will use this data to reach everyone in there market since the number of people in their market is so small. Mailing to people who are not ideal candidates for your dealership is off-set by the cost savings in postage and mailing list data.
Saturation mailings are also popular with large event mailers where the goal is to bring everyone to the event, regardless of if they qualify for financing. If conducted properly, larger event sales will have a wide variety of cars in stock, many of which available at reduced prices, and a greater number financing options to choose from.
Resident / Occupant data can also be enhanced with personalized names where they are available. This is called ResPlus and allows the mailer to deliver a more personalized message. Where a name is not available, the address simply stays coded with “RESIDENT”, or “Dear Car Buyer”.

For more information about what you can do to make improvements with your auto dealer direct mail campaign, talk to one of the many helpful consultants available to you at BB Direct. Visit our website at www.bbdirect.com, call (866) 501-6273, or email us at info@bbdirect.com.

Leslie Goldstein: Marketing Tips – Issue 52

April 1st, 2010

Make the 800 Number BIGGER
Sounds simple, but nothing says “Call me” like a bold 800 number.  The smart catalogers put it on every single page.  Does your direct mail have it on every single element?  Why not?

A Special Touch
Two thirds of the customers you lost in the last year were underwhelmed by your lack of interest in them. To avoid this waste, reach out.  Always send a thank you for their order.  Add a special offer with the thank you.  And for those you haven’t heard from, write and ask why.  Sometimes we just need a kind word or look to become loyal customers for life.

Who Are Your Customers?
A periodic analysis of your housefile will indicate how your customer profile changes over time.    Despite your disciplined use of outside list rental formulas, new and different types of customers creep into your revenue mix over time.   That’s logical, because magazine readership, donor lists and response lists are dynamic too.   Invest in a demographic overlay to see these new markets as they emerge.   You will get your money back with better targeting and list suppression in the future.