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  • Don’t Assume You Know Your Customers

    Don’t Assume You Know Your Customers

    Adam Richardson provides exquisite validation to Granite Partners’ research based marketing approach, in this well thought out blog post from Harvard Business Review. I couldn’t have said it better, so I bring it to you in it’s original form. Enjoy!

    Don’t Assume You Know Your Customers

    by Adam Richardson  |

    If the recent U.S. election taught us anything, it’s that you have to be careful assuming that others see the world the way you do. It’s very easy for any organization — political, commercial, not-for-profit — to get caught up in its own echo chamber of like-minded believers. After certain blogs, social media outlets, pundits, and talk shows whipped themselves into a self-reinforcing frenzy, many people were stunned by the election outcome. How could so many “experts” have gotten it so wrong?

    Shared enthusiasm and beliefs are valuable assets when pushing for a goal. In a business context, it’s vital that your employees are emotionally invested in your company’s vision. But there need to be checks and balances to make sure that the vision matches external reality, or you could be enthusiastically charging toward a similar shock. As the science fiction author Philip K. Dick once remarked, “Reality is that which, when you stop believing in it, doesn’t go away.”

    Getting an objective view of who you, as an organization, are trying to serve is critical, but it’s easier said than done.

    Most companies are the centers of their own universes. It’s a natural enough impression; after all, the products and services they offer are on their minds 24/7. The trap is in those companies deluding themselves into thinking that they are as important to their customers as they are to themselves. This is almost never the case. This delusion interferes with understanding customers and their needs, and frequently leads companies to talk to customers in ways that seem foreign or confusing.

    Financial services, the area that I work in now, is an example. It is rampant with confusing jargon and terminology, such as compound interest, ETFs, or the now infamous CDO, or collateralized debt obligation. A 2008 AARP study found that 79% of Americans think prescription drug instructions are easier to understand than materials from financial firms.

    But the financial services industry is not alone. Health care, wireless communications, real estate, information technology, and airlines are all major industries that consistently confuse and turn off their customers, leading to mistrust and disloyalty.

    Jargon in communication is just the surface of the problem. People who work in these industries day-to-day become infused with insider knowledge, techniques, and perspectives. After a while they forget their former lack of expertise and start to assume that everyone must also possess their knowledge — customers included.

    Employees are like hostages suffering from Stockholm syndrome — they take on the worldview of their employer and industry, and forget what it’s like to be a “regular” person without this specialized knowledge. Over time, employees start to talk mostly about tangible product features and become distanced from customer needs and benefits. Value propositions become more abstract and lose the naïve freshness of seeing of who customers really are and how they think, behave, and feel. It becomes increasingly difficult to see your company and industry as nonexpert outsiders do.

    How do we fix this? There are many research methods for better understanding customers, and you may be using them already: ethnographic research, focus groups, surveys, in-store intercepts, and so on. It’s also important to encourage employees to use competitors’ products, so they don’t develop tunnel vision. These are good and necessary, but you can have lots of data and still not see what it’s saying.

    There are two things that can stand in the way getting real insight:

    1. Admitting you may be wrong. If the organization isn’t willing to recognize that it’s not connecting with customers, dismisses indications that customers are confused or uninterested as “irrelevant outliers,” or avoids the message by shooting the messenger, then all the research in the world won’t help. Yes, there are times when an organization needs to be visionary and do things that at first most customers don’t get. Salesforce.com’s pioneering role in the nascent area of cloud computing services is an example of a company that was willing to lose some customers early on in pursuit of the bigger market later. But you have to be very confident in the size of the potential opportunity — and have the organizational fortitude — to pull of that big of a bet. Silicon Valley is littered with companies that made similar bets and failed because ultimately their proposed view of reality never came to align with that of their target customers’.

    2. Garbage in, garbage out. If you’re talking to too narrow of a sample (as was the case with many of the conservative pollsters) or framing research questions in ways that subtly pre-bias the answers, you could be inadvertently creating ever-better products for a shrinking audience. Don’t just meet with your best and current customers; get outside the echo chamber by meeting with ex-customers or people who have never been your customers but love your competitors and the upstart disruptors. (Yes, this often stresses out the sales team.) Years ago, when I was at Sun Microsystems, many at the company initially dismissed the cheap servers then being introduced by Dell and Compaq. Our loyal customers at large companies with massive IT budgets weren’t interested in these low quality machines. Not then, anyway. Sun couldn’t bring itself to lower its standards, and as a result, it ceded a huge part of the market to competitors moving up from the PC space.

    Don’t wait for a catastrophe to show you when you’ve become too caught up in your own hype. Make sure you are continuously seeking a more thorough and objective understanding of your customers, harness the fresh perspectives of new employees, and have the humility to recognize that your customers may have needs and lives beyond your company.

    For more on research and customerinsights, pick up your copy of “The Marketing Doctor’s Survival Guide”

  • Vertical Marketing Strategy – Are you Barking (Up the wrong tree) ?

    Vertical Marketing Strategy – Are you Barking (Up the wrong tree) ?

    Owen Ashby hit it on the head with this, we’ve seen this happen in bigger companies who are finding they need to spur new growth to keep up with the curve. Too perfect, no need for me to paraphrase, so here’s the original post in it’s entirety . . . enjoy!

    November 30 owenashby

    There was a time when all B2B marketing was horizontal and I don’t mean at the Christmas party (!).  Companies designed their value propositions to address needs they had identified in organisations of a certain size in a certain geography. There it stopped.

    Then someone sold the product or service to a Bank (for example). Everyone was delighted but not surprised because that particular bank had the exact needs the company had identified its product or service could address.

    Then some bright spark suggested that actually if they had one bank as a customer, surely other banks would “peer reference” (follow one another) and so the company should now try to sell to all banks.  To do that they would need a “Bank’s” sales force (and P&L) and probably a “Bank’s” proposition too. Of course with that would go a “Bank’s” sales target and the hope and dreams of the shareholders as  the company would surely be “the number 1 provider to Banks” before the year was out.

    Only it didn’t work out like that, by year two they had still only had one bank. The sales team had, had to focus elsewhere and the marketing team were at a loss. Which was annoying because the company had built its entire organisation like this. Now as well as a “bank” sales team it had a “retail” team (because they’d previously won a high street travel agent) and a “transport” team because they’d won a haulage company.

    Over the course of a period of three years they’d “gone vertical”. It sounded great  and each quarter they’d meet and discuss which new customers and prospects would sit in which of the new vertical teams they’d created. It was always a bit of a bun fight because they didn’t win any more banks or any more travel agents or any more hauliers. So they either created new vertical teams to accommodate each new win, or they stretched their definition of a vertical so wide ( to accommodate each new account) that the vertical became a horizontal again.

    Mmmm….

    Sounds implausible doesn’t it…?

    It is happening right now and if it’s not happening in your organization then you can bet your bottom Dollar it’s happening in the company across the street and the one next to them too. In the rush pull all the focus into a vertical market, companies are losing sight of the value of their proposition.

    One bank does not a banking vertical make.

    So what’s the point?

    Start by understanding the business issue your product or service addresses, then look for the kind of operational model that generates that kind of issue, then look for the organisations that fit that profile. You may find that large numbers of these organisations all sit in small number of market sectors in which case going vertical will be appropriate. However, there’s a really good chance they won’t and “going vertical” will make you irrelevant to the vast majority of the companies in that sector.

    If you’re not careful, you end up stretching your offering and value proposition to fit the vertical market strategy you’ve imposed…that way lies oblivion…margin and market erosion and a slow and painful death. Ironic really, when you consider you went “vertical” to allow you to focus in on a niche.

    For more on segmentation and niche marketing, pick up your copy of “The Marketing Doctor’s Survival Guide”

  • What Is The Worst Marketing Campaign Ever?

    What Is The Worst Marketing Campaign Ever?

    5/11/2012 | blur Group, Expertsourcing, Featured | Dorothy | No Comments

    We’re all guilty of the occasional bout of marketing Schadenfreude – but we’ve also probably had the odd campaign or two of our own when things didn’t go quite to plan. blur Experts talk about those well-known marketing moments when things don’t quite go to plan.

    David Poulos

    The worst marketing effort I can recall is a legendary story from quite a while ago, and was really a lack of research and local cultural awareness. When General Motors’ Chevrolet division launched a new mid-sized model called the Nova, after a superfast shooting star, hoping it would resonate with consumers seeking something fast and futuristic. The formulated print ads, mailers, TV commercials and worst of all, bill boards. The car sold very well in the US, but when they wanted to penetrate the Latin American market, no one in the marketing department did their homework. A quick rebadging would have saved the company many heartaches and a boatload of cash. They went ahead and launched the car as the Nova in Spanish speaking countries throughout Latin America, and after six weeks recognized that there might be a problem reflected in their dismal sales reports. It didn’t dawn on anyone at the company that NoVa in Spanish means “doesn’t go!”

    Huge billboards lining the roads in Mexico, Panama, Honduras, Costa Rica and El Salvador promoting a car that doesn’t run! Finally someone pointed out their error, and they pulled the car and killed the campaign locally. It pays to do your homework.

    We had one fairly significant snafu, but it wasn’t a strategy error, it was a relatively simple technical glitch that cost an awful lot of money. We were launching a new financial publication, aimed at investors, and using a series of direct mail pieces, multi-piece packages mailed in the millions. As you might imagine, a large chunk of the addresses on the target list were linked to the financial industry, centered in Manhattan, NY. One of the largest buildings in New York City at the time was the World Trade Center, which leased office space to hundreds of financial firms, and was so large that there had to be an additional line of address added for a mail stop number, so that the building’s mailroom could deliver efficiently. Someone in the data processing department was tasked with printing off a set of labels for this list, which numbered over a million records. The technician had a tough time fitting the addresses using our standard font, labels and software due to the extra address line – so he took it upon himself to eliminate the third address line – the mail stop. In five days our lobby was filled with commercial laundry carts full of undelivered mail, nearly 50% undeliverable! The entire World Trade Center had denied the mailing as ‘inadequately addressed’ without the mail stop line, and the post office, having a standing order on the account to return ‘undeliverables’ for address correction, returned all the mail to us!  We made the technician open all 500,000 packages, salvage the guts, and re-run all the letters and new labels.

    The devil is in the details when executing marketing tactics, and it doesn’t take much to reduce your plans to rubble. The best marketers are detail people that stay on top of the small stuff to make the big stuff flourish!

    For hundreds of tips on how NOT to make marketing mistakes, pick up your copy of “The Marketing Doctor’s Survival Guide”

     

  • Empowered Customers: A Direct Result of Technology Adoption?

    Empowered Customers: A Direct Result of Technology Adoption?

    This was so good I couldn’t resist re-posting it, courtesy of Sourcelink

    Rich Brown, Oct 02, 2012

    Enlightened marketers are now referencing the “Age of The Customer”, which is defined by consumers holding all the advantages as they have real-time information about pricing, product features and competitors.  The “Age of The Customer” has promoted the everyday consumer to the role of an empowered customer where not only consumer shopping behavior has changed, but also the way we market to these consumers.  Empowerment, as a direct result of technology adoption, has given a single individual, your customer, the power to choose how, when, and what they desire in terms of marketing.

    • How – In which channels does the empowered customer choose to be reached? Email, Social Media, Telephone, Direct Mail, or all of the above?
    • When – How often does the empowered customer choose to be reached specifically related to the cadence and frequency of marketing messages?  One email per day vs. one per week or one SMS text message per day vs. one per week?
    • What – What type of marketing content does the empowered customer choose to receive? Plain text vs. HTML emails, a printed catalog vs. a dynamic online catalog, printed coupons vs. electronic coupons vs. emailed coupons vs. location-based coupons?

    While customers have always had choices, it’s never been a more powerful time for the average consumer.  The Internet has been around for many years now and personal computers have long been a common household staple for most families.  Avenues for customer empowerment have existed for decades since the first online bulletin boards and online chat started to take a grip on our modern computing society.  What has specifically evolved us into to the “Age of The Customer” is hands down widespread technology adoption.  Without the proliferation of both the Internet and advanced hand-held, always-connected, technology devices such as smartphones and tablets into the hands of nearly every consumer, there would never have been this massive shift of empowerment toward the consumer.

    Today we take it for granted that we’re able to sit in front of a computer or better yet, pick up our latest and greatest smartphone or tablet and quickly do just about anything we need.  All in the palm of our hands, the empowered consumer can search for a specific product, find retailers who carry that product, research those retailers and their reputation, conduct a price comparison, read product reviews from other consumers and ask specific questions about that product, and finally buy that product. Customers are no longer blinded by false or improper product claims and misleading marketing because they have a global community in which to converse. They can research and determine if a company is not only reputable but also if their product claims are true and if they do right by their customers in the event of a problem.

    Additionally, as a direct result of technology adoption, a single consumer, with the power of a mobile device paired with the Internet and the long reach of various social media networks such as Facebook, Twitter, Yelp, YouTube or Google+ for example, now has the ability to create a collective opinion or voice, which rivals even the reach and voice of most commercial organizations and governments.

    Customers are indeed empowered and learning to use this power to not only buy exactly what they want, but to force companies, who want their business, to become “customer obsessed” and create an engagement strategy to help build relevant, timely and valuable customer interactions. Continued technology adoption will continue to make the empowered customer the new ‘norm’ and drive marketers to find new and innovative ways of customer interaction.

    If you found this insightful or helpful, and would like to read more, subscribe to this blog today! Don’t forget to pick up your copy of “The Marketing Doctor’s Survival Notes”

     

  • Effective Research Critical To Assess Member Perceptions, Boost Enrollment

    Effective Research Critical To Assess Member Perceptions, Boost Enrollment

    There are many areas of common interest among member-based organizations, especially now, but the largest and longest running area of concern is certainly finding and keeping members for the long term. Its the bread and butter, the engine of any organization, forming the reason for being, driving strategic direction, drawing stable revenue, and creating the nucleus of the organization that gives it its ideological center. But how do you present that value proposition to both new and existing members in a way that keeps them engaged and involved, year after year?

    It is a question that is raised constantly in roundtable discussions among non-profit executives, and one we see in our practice perennially, as new budgets are set, statistics from the prior year are examined and goals are derived. Unfortunately, there is no single easy answer, as each organization has its own unique value proposition, its own character based on the membership in aggregate, and each should be assessed on a case-by-case basis. Fortunately, there are some common areas that can be reviewed and measured, and some relatively easy fixes that can be put in place at minimal cost that will yield results both short and long term.

    The most obvious area in which to start your retention effort is an investigation into what you really know about your members. Almost to a man, if you interview senior executives at a non-profit, they will tell you know they “know” their members well, know what they want and what they need, what will attract them to the organization. Yet if you delve a little deeper, ask when they last surveyed their members about the organization itself, about how their individual lives and businesses have changed, how their needs have shifted, how they’d like to receive information, you’ll almost invariably find that the executives view and the reality do not connect completely. There’s general agreement, surely, for any good Executive Director knows the basics of their members and their respective businesses. However, the speed with which things change, not only in the members’ lives and business circumstances, but in the media and communications arena, regarding content delivery and outreach methods, make it necessary to accelerate your rate of member surveys and research by nearly double the typical rate, in order to stay current. Flexibility and adaptation are the keys to survival, and to make the right moves, you have to have good recent data.

    Once you’ve decided to craft an updated survey, creating the most revealing questions, limiting them in number and complexity to reduce abandonment and boost response, and deciding the most reasonable and appropriate delivery method are some issues that must be dealt with. There is a balance that must be struck between gathering a comprehensive data set, and gathering enough responses to make the resulting data statistically significant. Too few questions and too little data and its a wasted effort. Too long a survey to get the most data yields too few responses and the reliability of the data suffers.

    Most surveys on a single issue or two are kept to ten questions to boost response. More indepth total member surveys can be double or triple that, but at that length, delivery methods must be considered, as does the question of incentives. A short survey can be delivered in an e-mail, posted on a website, or set up via an independent web-based services, like Zoomerang. Longer, multi page surveys don’t pull as well using online methods, and the incentives typically delivered through online surveys, including coupons and links to other sites etc, are typically not powerful enough to drive the response levels you’ll need to make good decisions. The abandonment rate is too high on a long online survey, and you might burn a bridge to your members or customers if you insist on delivering such a document in this manner. More lengthy surveys are often best delivered by old-fashioned snail mail, and include a more valuable incentive to spur response.

    Your list of recipients is also important. It may seem obvious that you include a large chunk of your current members on such a survey, to get a sufficient number of responses, but there are other constituents that should also receive a survey, and in some cases the questions should be tailored to their status. Expired members who didn’t renew, those in arrears, a sampling of prospects, those with no participation in a committee, project or who haven’t  purchased anything from the organization in over two years, each could have a slightly different coded survey, one that collects information about the value to the organization, their current business situation, and their needs and preferences.

    Once these issues are worked out, the survey delivered and the data collected, the results should be analyzed in a number of different ways. With no baseline data to work from if this is the first comprehensive survey in more than two years, this data constitutes the best information you have, but won’t be useful in spotting trends or sensing shifts in perception or preferences. It can still be used to craft strategy and policy, and to present enticing value to current and future members.

    One of the more important questions is one regarding communications preferences. If you are trying to communicate value to your members, you have to have a good idea how they’d like to receive that information. This question will also give you a secondary reading on the technology adoption curve location of your members. If a majority of members would prefer e-mail or other web-based vehicles, your members are moving toward the center of the electronic media adoption curve, and is a good indication that they will continue to develop at a pace commensurate with the national average. This metric may correlate well to the average age of your member. Older members are typically behind the curve, both due to lack comfort and educational opportunity, and to the expense associated with high-speed internet access.

    Any way you conduct the research, the best policy is to BELIEVE THE DATA. If you’ve gone to the trouble and expense of polling your members and associated constituents as to their needs and preferences, you should at least have faith in the data. If the data goes against your “gut” feeling about members, or trends away from the direction you suspected through anecdotal evidence, it may have been too long since these impressions were formed.

    Now that you have some baseline data, you can begin to formulate a strategy to address the needs your membership has expressed, and how to effectively market your approach to meeting those needs as a value statement that will resonate with members and prospects alike.

    For more like this, don’t forget to pick up your copy of “The Marketing Doctor’s Survival Notes”

  • E-Mail Drives Sales – Duh! HBR Tells The RIGHT Story of E-mail Marketing

    E-Mail Drives Sales – Duh! HBR Tells The RIGHT Story of E-mail Marketing

    Thought you’d find this of interest, so I reposted it in it’s entirety – sums up what I’ve been saying for several years!

    by Arthur Middleton Hughes  |   9:00 AM August 21, 2012

    In a business world obsessed with gaining more customer intelligence, you would think that email marketing would get more respect. But just look at media spending. According to eMarketer, this year U.S. companies are spending about $64 billion per year on TV, $34 billion on print ads, and $39 billion on Internet advertising. And how much are they are spending on email? For that, we have Forrester data: only about $1.5 billion.

    Of course, compared to other media, email messages are dirt cheap to send. With TV you are spending on ad agencies, creative studios, and cable channels. With print ads, you are helping to keep newspapers and magazines alive. Direct mail costs more than $600 per thousand pieces. With email, there are almost no costs at all. But its low cost only makes the argument stronger that email marketing is the most cost-effective advertising method available today.

    Certainly email beats the competition from a measurability standpoint. With TV you do not know who is watching your ads. Ditto with print. Even with direct mail, you cannot be sure that your mail has been delivered, or that anyone reads it when it gets there. With email, you know within 24 hours exactly which messages have been opened, by whom, what links the openers clicked on, and what part of your message was working.

    A properly structured email message provides this benefit to the marketer because it provides benefits to consumers. A TV, print, or direct mail ad is what it is. On email the ad is much more. Because of electronic links, those who open your emails can do their own research: they can explore and see any of the thousands of products that you sell. They can see the colors and sizes. They can, and they do, read ratings and reviews. They can put products in their shopping carts and buy them.

    “Fine,” say the TV folks, “but shopping cart sales through emails are seldom more than 5% of total sales. Nothing to write home about.”

    What these detractors seem to willfully ignore is that emails create impressions that lead to sales through other routes. Some of these routes can be tracked. The recipient can open it or delete it. If she opens it, she can click on it, perhaps buy something or print out a coupon and take it to a store. Finally, if she puts things in her cart but does not buy, you can send her an abandoned shopping cart email that usually yields 29% of lost sales.

    But note that, in many cases, she also does things that are hard to track. She can get in her car and drive to a mall to buy the product. She can pick up her phone and order it. She may be prompted to do research on Google for better prices of similar products, or discuss the offer with her spouse or a friend, leading to a possible purchase later. These are all the behaviors that provide the rationale for TV or print advertising. My point is that emails prompt the same kinds of behaviors. Thus, there is an off-email multiplier. For every purchase in an email shopping cart, we can fairly assume that there are some number of other non-tracked profitable purchases that occur because of the arrival of the email — a number that quantifies all the non-tracked behaviors that email recipients engage in.

    If you are going to make a case for investing more heavily in email marketing, you have to determine this off-email multiplier to account for all the sales your emails can be expected to generate. How can that be done? A retailer I’ve worked with which has 900 stores and is very active with email campaigns recently did a great study. It took a group of 105,000 customers in its loyalty club database, divided them into three groups of 35,000, and marketed to the three groups differently, as shown in the chart below (click to see a larger version). Thanks to the loyalty program, it was able to see all subsequent purchases by these customers.

    Direct mail has a higher response rate than email. But note that direct mail costs about 100 times as much. Meanwhile, the data collected by the retailer allowed it to calculate its off-email multiplier (a simple matter of dividing the percentage of online sales by the percentage of in-store sales generated by email-only marketing). It is 3.76. In other words, for every email shopping cart sale, this retailer gets 3.76 other, typically non-tracked sales due to the email.

    What might your off-email multiplier be? Zero is of course possible, but studies to date suggest that a number between two and three is typical.

    Once you factor in your off-email multiplier, it’s a very safe bet that email will beat all your other marketing methods in terms of return on investment. As email marketing gains more respect, marketing intelligence will meet customer intelligence. Don’t forget to pick up your copy of “The Marketing Doctor’s Survival Notes” to read more about e-mail Marketing effectiveness.

  • Does Social Media Marketing ACTUALLY Drive Customer Behavior and Convert to Revenue?

    Does Social Media Marketing ACTUALLY Drive Customer Behavior and Convert to Revenue?

    Social Media, social media, social media – there, I said it three times into the mirror, now I just have to wait and see what happens . . .

    That seems to be the approach many companies are taking to this relatively new phenomenon. The head in the sand approach might have some advantages in the long run, if recent data on the effectiveness of social media in driving customer behavior is to be believed. It seems that despite all the hype, and press, and sturm-und-drang in the digital media, minting new ‘social media gurus’ by the flock, digital media and it’s permutations don’t drive near as much revenue or even shopping behavior individually than they do when used together. Integration seems to be the real strength behind conversation marketing’s mechanics, and when the reams of data generated are used properly ACROSS multiple platforms, it seems to at least have the ability to drive a solid promotional campaign and boost response levels.

    That said, here are some interesting tidbits of data, excerpted from a recent Gartner Group study:

    • 11% of polled consumers had read a company blog, and only 4% had commented on one.
    • Twice that many, or 23% had viewed a company provided video.
    • 45% said they planned to purchase based on a combination of brick and mortar, digital ads, and mobile marketing, but only 1% said they planned to do so based on mobile marketing alone.
    • Only 26% of consumers said they had clicked on a Search Results page paid ad – irrespective of engine brand.
    • Based on data from another similar study, only 6% said they had purchased based on a facebook ad
    • 40% said they had registered for a promotion or contest based on an e-mail or social media ad

    Clearly, consumers want something for nothing (hence the contest results), but don’t want to work at it (read the blog data, reading a whole blog takes effort)

    Also just as clearly, mobile marketing has not reached the level of credibility, trust or penetration it’s purveyors would have you believe, and while it may be the next big thing, it ain’t there yet, not without massive support from other media to reinforce it’s message and bolster its credibility.

    Video seems to have made substantial inroads, but anyone who recognizes the level of involvement the TV generation needs to engage will see a clear correlation between the aging of the boomer TV generation and the level of importance video has attained. Add in the near ubiquity and availability of high-speed broadband Internet access allowing for video transmission at better fidelity and faster speeds, and video’s effectiveness becomes less mysterious. The fact that consumers would rather watch a video and have their eyeballs babysat rather than read and understand and digest and analyze a company blog to get their information is less than mysterious as well, when the audience is considered.

    The trick with all this is to take the data it generates, and use it to form better customer profiles that can be used to not only drive behavior, but to predict it as well. If you can create a digitally integrated campaign that uses the initial brush with consumers to link to a behavior and transaction based profile, you can then draw that consumer along a continuum toward a purchase after several touch points are hit. That’s how integration beefs up the ROI equation. The development of such campaigns requires broad and detailed knowledge of the target audience, so that it can be set up to account for the wide variety of behaviors possible by consumers. If you can narrow the range of preferences and behaviors, and drive consumers down a narrower funnel, the ROI can be quite lucrative.

    According to Gartner, ‘Companies using in-bound and event-triggered marketing techniques to draw consumers will see a 600% higher response rate compared to traditional outbound push campaigns’. That sounds pretty fantastic. I wonder if that will continue to be the case as more firms start to embrace this practice and it becomes more common. Will this type of campaign reduce the level of trust and credibility across the board, making consumers distrustful? Interesting to ponder, but I think not. To paraphrase W.C. Fields, “no one ever went broke underestimating the gullibility of the American public”.

    If you found this insightful or controversial, and would like to read more like it, subscribe to this blog today! Also, don’t forget to pick up your copy of “The Marketing Doctor’s Survival Notes” 

     

  • Emoticons Do NOT Elicit Emotion From Prospects

    Emoticons Do NOT Elicit Emotion From Prospects

    I got several e-mails and text messages yesterday from other professionals and colleagues that contained one or more emoticons – you know, those little symbols of smiley faces or their derivatives made out of punctuation marks. These have become more popular with the advent of phone texting and Twitter, platforms of communication which limit the character count of a message. They are safe little familiar symbols that can be used in informal, personal communication to convey mood, or indicate that the preceding message isn’t serious. But one of the messages I received was acting in a different role, that of a selling communication piece, and I felt it was inappropriate to include this little symbol in this message. It reduced the seriousness of the document, as it was intended, but it also reduced the credibility of the sender, and diluted the sales message to the point that no serious prospect would consider buying services from this company – a net loss just for using a little symbol.

    That shows the power that written communication still has to hold, engage and persuade us in today’s high-speed communications environment. It also shows how much impact a few characters can have, be it negative or positive. Written communication is one of the elements that separates Man (big M) from other animals, and as such, I feel it’s owed a certain level of respect and that each of us should practice it’s usage and strive for the highest level of clarity and effectiveness in all of our written communication efforts, no matter how trivial or insignificant it’s intent. These little symbols work against that principal, and as such have no place in professional communications.

    Language is a very powerful tool, and written language has the additional advantages of thoughtfulness and permanence. You can take your time, craft effective phrases, get the word choice exactly correct to convey slight shades of meaning, and one you write it, either on paper or on a screen, you can review it again and again, in different contexts and under different circumstances, to help digest and grasp the intended meanings over time.

    Professionals, like the consultants here at Granite Partners, spend hours and hours honing their writing skills, crafting effective copy that evokes an emotional response from the reader, one that can persuade the reader to take action, either in advertising, or in direct mail, to make a purchase, to send back a coupon, to answer a survey, to buy an ad, and a host of other activities, without using one of these little symbols. We spend days devising questions to elicit a usable response in surveys, either to be spoken or read by the respondent, and don’t use any of those little symbols. We spend hours on the wording for a headline that elicits just the right emotional response, days on a piece of collateral material, fact checking, spell checking, organizing and editing to elicit just the correct reaction to the offer and call to action – without using any of those little symbols. So why are they even here?

    People use them as a short cut. They are lazy, or not properly motivated or sufficiently educated to use their own language properly, so the symbols make it easier to convey emotion with a limited vocabulary. It may seem curmudgeonly to professional readers,  but I feel that anyone who has graduated with a diploma from a public high school paid for by tax-payers in the country should be able to craft a sentence that is adequately robust so as to not need to add an emoticon at the end to convey meaning. Maybe a little test about a week before graduation for every senior, one that asks each one to write five paragraphs that will be sufficiently eloquent to persuade the principal that they should be allowed to graduate, without using the little symbols. I wonder what that would do to summer-school enrollment . . . ?

    More about the craft of language and other fascinating topics in your copy of “The Marketing Doctor’s Survival Notes”

  • E-Mail Brilliance In Bite-Sized Chunks

    E-Mail Brilliance In Bite-Sized Chunks

    5 Elements of Effective E-mail Messaging

    1)      Carry the Brand – if you send an e-mail to a new or known constituency, no matter what’s in the body of the e-mail, if it doesn’t get opened it’s a waste of time, and if you don’t have your brand prominently displayed, your chances of an “open” are decreased by 70%. Security concerns are at such a level that if you don’t recognize the sender, it will NOT get opened. Make sure your “from” address is the one the recipient will recognize. If you’re sending through a third party e-mail service, which most will be for lists of any size, be sure they have created an outgoing box your audience will recognize.

    2)      Make the Subject Compelling – in the inbox or in preview, even on mobile devices, the subject may be the only thing your recipients will see. If you get it wrong, it’s irrelevant, looks promotional or like a scam or come-on, it won’t get opened. Give the receiver a reason to read further, make it relevant and within your brand characteristic list. Then it reflects accurately and well upon your effort.

    3)      Make it Personal – Modern e-mail technology allows for multiple personalization of e-mail messages – use it. Sending e-mail that looks like a static ad says to the recipient “you don’t know me”. You do know them a little so show that you not only know but have something you think they would find of value. Call them by their name, use their company name, pitch it to their gender, include a neighborhood fact – all this comes from just the address block on a mailing list! Make the technology work for you.

    4)      Get it Up Front – Structure the message like a press release – put the most relevant information in the first few sentences, front load the offer, use a coherent and attention getting headline and subhead. Pique the reader’s interest, get him to read further, and draw them in with relevancy. Most people, if they open your message at all, will only read the top 10% of the message before deleting. You only have a few seconds to get your point across, so make it short and sweet.

    5)      Make it Easy to Respond – One of e-mail’s main advantages are the links to web content you can include. Whether it’s to drive web traffic, drive donation, registration for events, make it a simple single click to get them the relevant information you wish to convey. Multiple links should be part of the body of the message, as well as at the bottom where the response mechanism is likely to land. Converted links are fine so that the message makes sense even when printed, and avoids long URL addresses that interrupt the flow of the message. Provide links in multiple formats, both full length and blind as part of the call to action, so that if it gets printed and passed along on paper, you can at least type the URL into the browser and reach the response page. Devise a specific landing page, so that the link takes them to the specific response you want, and they don’t get lost among multiple pages of your site.

     

    List Hygiene – Essential elements for high deliverability

    Keeping your e-mail list clean and functioning has many advantages, both reputational and economic.  There are many parallels between snail-mail mailing lists and electronic mailing lists. The ISPs function in the Post Office role, and they have their rules of conduct just like their paper corollary.

    Several rules will help you keep the list clean and effective, now and into the future.

    1)      Respect Your Recipients – when bouncebacks and requests to unsubscribe should be respected and acted upon immediately. All “Unsubscribes” should be scrubbed prior to the next mailing. Bouncebacks should be examined to determine the reason and a decision made whether to repeat them or drop them immediately. Remove any duplicates – they may not you’re your message once, they sure don’t need it twice.

    2)      Respect the System – ISPs are duty bound by their customers and enrollees to police their bandwidth and protect their customers. Repeatedly mailing to bad addresses will alert the ISPs and your mail may be considered SPAM. Set up feedback loops with the ISPs to have them alert you to requests to stop mail and other dead ends in your list. Take your bounceback that are bad links and use them as the seed of a suppression list for future mailings.

    3)      Check it on the way in and the way back – use data checkers in your data entry screens to keep out obvious errors and fat-finger mistakes – simple things like seeing the “!” in place of the “@” can raise your deliverability. Check the bouncebacks for simple errors and correct them immediately, especially errors in the domain name, which can be done with a find/replace algorithm.

    4)      Take out the obvious offenders –  remove all addresses that have the word “SPAM” in them, and distribution addresses – sales@domain.com or info@domain.org – those folks didn’t give you permission to reach their entire sales department, and will view your mail as spam and report it to the ISPs as such. SPAM addresses are likely traps added by the ISP and will land you in trouble quickly.

    5)      Routinely Revive your Opt-in – once you have permission via opt-in from a recipient to send something to them, don’t count on them remembering that they granted it. For regular e-mailers, those with periodicals and times messages, refresh your opt-in message and take the opportunity to show any value-adds that make it worth it to grant permission.

    If your lists are large, some mechanical assistance might be in order. LeadSpend recently introduced a new email validation service that correctly verifies over 97% of all email addresses. Check it out here http://www.leadspend.com/validation . Companies like FreshAddress and others can do some of the hygiene for you and keep your reputation clean with the ISPs.

    Mechanical Considerations

     

    1)      Make sure your HTML and other formats are readable by ALL formats of e-mail reader, including Outlook and others. If using a service they will likely ask for three versions of the e-mail, one for each of the two major formats and a plain text version.

    2)      Don’t count on an image to tell the story, use text as well. Some mail programs are programmed to strip out the images, or deny your message entry as a result of containing the image, so the recipient never sees them. Some very strict firewalls will deny any e-mail with any images in them at all.

    3)      Give your audience a chance to unsubscribe – always. If your content is relevant, they won’t take advantage of it, and if it’s not, you won’t waste money on sending to them in the future.

    4)      Provide a phone number – some people still aren’t comfortable spending via the web, but will gladly give out their credit card number over the phone, thinking its safer.

    5)      Make sure the links and phone numbers are current and functional – enough said.

    6)      Test color – some colors read strangely on different monitors and different graphics cards.

    7)      Keep fancy backgrounds and images sizes to a minimum and still maintain quality – if the e-mail is a huge file it might get filtered out of many firewalls based on size.

    8)      Make the headline tell the tale – some readers don’t get past the top three inches of the screen.

    9)      Format for mobile – most don’t do that yet, and you’ll gain an advantage over them if yours is readable on a Blackberry or iPhone.

    10)   Learn from your mistakes and READ your  metrics report from the ISPs and your service provider – there is a lot of valuable information that can be gleaned from open rates, dwell times and other stats, ready to be used when you design the next campaign for this same audience.

    If you found this information valuable and would like more, be sure and pick up your copy of “The Marketing Doctor’s Survival Notes”

     

  • Keep Your Audience Close . . .

    Keep Your Audience Close . . .

    As a marketer, I have a certain level of curiosity about my client’s customers, and how to reach them effectively, how to reach their emotions, to shift their perceptions, to alter their behavior in a way that helps them make the decision to buy, to join, to attend, to engage in some way. That curiosity is at the heart of all of our engagements, and as a research-based marketing strategy purveyor, we get to indulge that curiosity on behalf of clients every day, and after some discussion realized that we were all grateful for that.

    Knowing your audience thoroughly and as completely as you can is what makes for marketing success. It allows you to speak directly to them in your copy, it allows you to offer them products and services and opportunities that you KNOW they will appreciate and will feel entitled to obtain. Knowing what they like, when they are likely to like or need what you offer, knowing what stage of life they are currently inhabiting, and being able to predict how they will react to a given opportunity allows you to present thing you have to offer in a way that other retailers and marketers can’t touch. Good research will allow you to do that, no matter what you’re selling.

    Many of our engagements involve outreach in the form of direct mail, which allows clients to reach a wide audience with customized offers or pricing or product choices created specifically for that individual or group of individuals, with remarkable success. Mail may seem antiquated in an era of high-speed social media, e-mail marketing, wireless mobile this and that, but really marketing is not about tools, its about connecting with the potential buyer in a way that influences them. It’s about influencing them to consider your products and services for purchase. Purchases make companies money, period. So really, all the online communities, all the digital social interaction, all the sharing of consumer information really doesn’t make anyone any money until someone actually buys something.

    What it can do is help you know your audience better. All the data served up voluntarily on a daily basis can help you frame a profile of your audience that’s more true to life than what magazines they read or what type of car they drive, and certainly provide more recent information. The combination of social media data and transactional data from retailers can be an unbeatable combination for marketers hoping to know their audience better. The data is available, now you have to figure out how to actualize it, to monetize it, to turn data into dollars.

    The more you know about that target segment and the individuals contained within it, the better you can offer them goods and services they will find appealing. If it’s appealing, they will find a reason to buy it. The simple formula goes: data > knowledge > strategic appeal > purchase > data . . . in a big circle. It’s a good formula to keep in mind, and it feeds into the whole idea of creating a community. What makes a community, in marketing parlance, is that you have a group of individuals who have a reason in common to repeatedly participate in a certain activity, be it buying, or discussing, or learning about  or something involving what you have to offer. The “in common” part makes it efficient to reach them and binds them together. The “repeatedly” part is what connects you to the data acquisition formula, and what gives marketers the “in” to offer them things they find appealing over and over again.

    The real moral of the story is that the better you know your audience, the better you can serve them and the better your marketing will be to them, which in turn adds to your ability to serve them. Go forth and gather data . . . you’ll be glad you indulged your curiosity!

    If you found this information valuable, and would like to read more, be sure and pick up your copy of “The Marketing Doctor’s Survival Guide”. . .