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