Jul 2

Just this week, I was on the receiving end of the best B2B campaign I’ve seen in years – and had to fire off this posting to you without delay, given the valuable marketing lessons to be learned from it.

A seemingly hand addressed brown paper envelope was delivered to me.

Inside… a hotel key and a note offering a web address. It intrigued me – had I won a prize? (Of course I knew I hadn’t. But nevertheless, I was impressed by the mystery. How could anyone not be?)

So I took the bait and visited the site. It was a hotel micro-site inviting me to review a simple hotel restaurant menu and “construct” my perfect meal. Very cool interactive content.

Once I completed this menu , the true nature of the campaign was revealed. Both mailer and site were a demonstration of the prowess of VLG - clearly a very interesting interactive agency! VLG pointed out that I had not only engaged with the site, but revealed critical information about myself along the way (steak, not chicken!).

Moments after completing the site’s online form I received a call from VLG.

So what can you take away from this top-flight campaign? Five key components:

1. Accurate Targeting: I lead sales and marketing at AccuData. I’m the perfect target for this agency

2. Attention-Getting Opener: Marketers know unusual mail pieces have a better chance of being opened. Boxes are the best but a hand-addressed brown paper envelope is very good.

3. Irresistible call-to-action: the hotel key was a unique way to spur the desired response… my visit to the URL.

4. Show, don’t tell: The mailer didn’t tell me what VLG could do. It showed me the proof in a memorable way. And that made all the difference.

5. Fast follow-up: By calling just moments after my site visit, VLG reached me at the peak of my interest when they were still top-of-mind. Definitely a best practice.

Was the campaign expensive? Sure. But VLG could never have driven that response from me with email or a more traditional mail piece. B2B direct marketing can often support more expensive promotional costs because of the relatively large value of a sale.

Check out another great mail piece I’ve reviewed: “Dear Mr. Goff” isn’t even close - let’s get variable

May 10

About six months ago I returned a call to a customer who asked to speak with me.  This customer works for a small agency that typically buys various types of data from AccuData.  The call went something like this:

Customer:  “I’d like to keep working with AccuData but a competitor is offering a loyalty program if I go with them.”

Me:  “I certainly would like to keep serving your company, tell me about the program.”

Customer:  “It’s a points program and I can cash in points for things I want or that my company needs.”

Me:  “Can you please give me an example?”

Customer:  “They have a cookie of the month club…”

Buying direct marketing services = cookies? 

It struck me then that as far as loyalty programs go, the bar had been set fairly low in the direct marketing services business.  This was the spark that kindled the eventual development of AccuPortal, a set of services and benefits we’ve just launched to help our reseller customers.

Click here to read the press release.

We wanted to build something that would materially help our reseller customers thrive as well as reward them for their business.  AccuPortal offers our customers proven sales and marketing tools and data cards – all of which can be customized and private labeled.  The system offers professional sales training as good as anything offered by any of the well known sales training consultants out there.

Beyond this, we’ve introduced the industry’s first Money-Back Data Guarantee and AccuCash, our own loyalty program.  But AccuCash pays just that – cash, not cookies.

I’ll report back on progress we’re having enrolling members and maybe we’ll be able to get a customer or two to offer up a case study or two to demonstrate how this tool increased their business.

Apr 2

By now you know that on April 1st, AccuData issues the world’s first data card of known vampires.  We made this announcement via email to our customers and on Twitter and Facebook.

I’m thrilled to say the response has been tremendous and we are busy processing counts and orders.  Visit Born Into Darkness for more information on the data card, or The Big Fat Marketing Blog, which features a post by Beth Negus of Chief Marketer about this sultry list.

Now anyone in the data business will appreciate the challenge of locating this file.  Let me tell you, travel to Transylvania isn’t cheap (especially from Miami via Rio), easy (our vampire friends over there put the “C” in customs) or convenient (night flights only at Transylvania International Airport).  But we got ‘er done.

What is it about vampires?  How did they get to be so cool?  Before New Moon and the recent vampire renaissance the most popular vampire was “The Count” on Sesame Street, or maybe “Count Chocula” cereal character from General Mills.  I guess I’m just not cool!

Oh, well – you want specialty data?  You got it!

April Fool's!!!

April Fool's!!!

 

Mar 15

Consider a general store from the 1800s – the kind of store you might have seen on the Frontier in early 1800s. In those days, this was virtually the only place you could buy supplies. When you walked in, you’d find piles of blankets, bags of wheat and bottles of “snake oil.”

The shopkeeper would know you because it’s the only place in town. He would know what you bought, how much you bought and how you paid — he even knew your family. In fact, the clerk knew ALL about you because you lived in a small town and bought everything you needed at the store; furthermore, the shopkeeper was a prominent figure in town, right in the middle of all the town gossip.

Of course, there were no computers but he DID have a ledger book, which held the account balances for everyone in town — in those days, folks were able to buy on credit just like we do today. But this was a smart shopkeeper and there was much more in the ledger. I’ve seen several 1800s-era ledger books. One held a variety of notations about customers, like their likes and dislikes, their children’s birthdays, even a notation about a customer’s horse that had died (“might need new tack”).

In essence I was looking at a 1800s-style customer database and a really comprehensive 360-degree customer profile. But more importantly, the shopkeeper was able to interact with each customer on the shop floor, using all the information available in real time.

Three points:

1. What many of us are trying to do today — craft personalized communications and understand our customer — is literally a concept and practice that has been around as long as merchants have been doing business.

2. What changed over time was the scale of commerce and hence the complexity of what we now call “database marketing” or “CRM” across thousands and even millions of customers.

3. Although the technology needed to collect and manage data at this scale developed, particularly since 1995, marketers have generally NOT been able to make the data usable on the shop floor. The “marketing data” was typically not made operational because of a missing link between the data in the back-end marketing database and the shop floor. In the case of the general store the linkage was there - because the shopkeeper managed the data in the ledger and interacted with the customers.

Here is an example of how this linkage can work today, although VERY few companies are doing it:

I recently boarded a plane, as I’ve done hundreds of times. The flight attendant approached me just after takeoff to offer me a small bottle of champagne and thank me for attaining elite flight status. Wow! Now of course I had received a mailing from the airline — the direct marketing team had done their job well. They knew I achieved the flight status, ran a “trigger” campaign, and mailed me a nice thank-you note. I was able to board early due to my flight status, which of course is great. But emotionally, these benefits paled in comparison to that little bottle of champagne and the in-plane thank you.

In this case, the airline extended its customer data, and my flight status in particular, to the airplane and created an in-plane program to make the data operational. This is hard to do and I only had this experience once. But some companies are all about developing real-time, operational database marketing programs. Casinos for example (maybe I’ll talk about this in another post).

How do you do it?

In most cases, the marketing database exists, as does the customer facing POS and other systems. What’s missing is simply the linkage between the two and this is where web services come in. Today it’s quite straightforward to develop web services that link “back-end” customer databases to front line systems.

This approach allows data-enabled operational programs like:

1. Distributing coupons online or through the mail and then monitoring redemptions in real time, providing data to yet other real-time CRM trigger programs

2. Creating data-enabled experiences on planes, hotel rooms, restaurants

3. Linking to social media campaigns, like recording Facebook enrollments and reacting via email in real time.

This is really fun stuff.

Feb 3

The economy is turning around. How do I know? My mail told me so. Maybe not in so many words but it certainly insinuated a recovery. Of course I won’t hold the mail or the mail carrier responsible if this prediction falls flat but yes, I do believe all signs point to better days ahead. So you may be asking, “What on earth could have brought about such an epiphany?” Was it a vision? A dream? Nah, it was a piece of direct mail. But not just any direct mail – it was a piece offering timeshares.

The direct mail in question, for The Hilton Grand Vacations Club, was beautifully done and very high quality. It showed – and spoke to – all of the right things and it certainly stood out amongst the mounds of mail I received.

So how does this signal a return to prosperity? Simply by the fact that the timeshare market, Hilton in particular, feels that some people are at a better place, a point where they may be willing to invest in a relatively expensive discretionary purchase.  Let’s not forget that timeshares, along with real estate in general, are big reminders of the banking and mortgage crisis. If a brand like Hilton is comfortable selling timeshares to audiences again, things must be getting better…even if just a little bit, right?

The other thing that stood out was the medium itself – direct mail. During a time when email and digital technology are heralded as the best bang for your direct marketing buck, it is proof once again that direct mail does have its advantages. When done properly, it informs and generates a positive emotional response, which makes a huge difference in prompting a buying decision or developing customer loyalty. Plus, direct mail is tangible – a piece can lay around a home or office for months, garnering numerous views from the recipient or passive viewers, making your messaging shelf-life a long one.

So, things are looking up. Let’s keep our minds moving forward and an eye on the future – in the meantime I’ve got a Hilton Mini-Vacation to book…

Jan 28

As PODI show continues, I am amazed at how the forum always offers new and exciting ways for participants to stay relevant. AccuData exhibited at Print ’09 and I came away from the event struck by not only the incredible printing technologies available to marketers today but the additional value-added services offered as well.

 

One of the best exhibits last year was Kodak’s. It was large and very high-tech but on a more practical level, it was jam-packed with great information for printers interested in becoming “MSP”s – Marketing Service Providers. This year, I can only imagine that many more attendees will be offering – or looking for just those kinds of services.

 

Why? Because it’s just smart business. At the end of the day, printers touch a huge portion of the direct mail and other direct marketing materials produced every year – direct mail alone is still a huge $51 billion business. But thanks to shrinking margins, dwindling budgets and attacks by competitors, the printing business is more competitive than ever before.

 

To remain competitive, many printers have become, or will become MSPs. What this means is that they are layering value-added marketing services (advice, creative, PURLs and email, data, analytics and database systems) on top of their traditional “ink & paper” business – allowing them to assume the role of seamless partner as opposed to disposable vendor.

 

Today, a successful MSP can help their clients more accurately target and develop better direct marketing materials and increase ROI.  The risk of NOT doing this is the possibility of losing key accounts to more sophisticated players. I’ve seen this happen and it’s ugly.

 

If you aren’t at PODI, give AccuData a call. We’re here to help as we have done for hundreds of other printers across the country.

Jan 20

Wow, 2010! The New Year has always been my favorite time of year for business –it’s a time of renewal and excitement for the future.  We all get a fresh start on January 1st.

Or do we?

The boom is over – and boom-time companies, executives and marketers are done if they don’t have what it takes to survive in the new economy.

Most economists believe the country is out (or nearly out) of recession and that we’ll see some growth this year.  But recovery isn’t the only story we’re likely to hear about in 2010.  If you are a student of business history you know there is something very interesting going on – something that has already reshaped industries across all sectors and will continue to do so all year long.

Frankly, for some companies it wasn’t hard to make money during the boom.  While some companies and executives certainly did better than others, success was evident in abundance.  New ideas were easily embraced by investors and consumers.  The bar for marketers was low – everything worked and delivered sky high ROI!

Not anymore.  Now it’s time for the real stars to emerge.

Companies without a clear competitive advantage and sound management won’t make it.  Marketers can’t just throw money at the problem; products and services must have compelling value, quality marketing and delivery to succeed.

If you don’t believe me think Pontiac or Circuit City and countless other mid-sized and small businesses whose storefronts were shuttered all over America.  I’ll wager that many of the superstar CMO’s from the past decade won’t make it in the next.  Now it’s about strategy, planning, sharp pricing, distribution, etc. and these things are hard.

Now is the time to get smart – while you still can.

There are a host of great service companies, including AccuData that can help.  Now is the time to reach out, challenge your thinking and see if you can find better services at better prices.  If you don’t use services, you should seriously consider it.  Service companies can spot trends across industry sectors well in advance – they deal with hundreds, even thousands, of companies.  It’s sometimes easier to spot opportunities from this vantage point.

I promise that your competition (and your colleague down the hall) is thinking hard about this.  They are making a move.  You don’t want to be standing still when they run past you.

Dec 9

A client recently asked AccuData to develop a predictive model to help target a large national direct mail and email campaign. Notice the request was to develop “a” predictive model - we actually wound up building ten, and despite the incremental cost of building ten vs. one, they drove sky-high ROI for the campaign.

Why did we do this and why did it deliver economically?

Predictive models built for a national prospect universe assume that individuals or households with similar characteristics behave the same way in each MSA. They don’t. Many marketers approach this problem by asking their analytics team to include a geographic factor, essentially asking their team to make sure the predictive model includes a factor for geography. But this is often a mistake.

First, in many cases the geographic factor is weak compared to other key elements (e.g., demos, lifestyle factors). In this case the geographic factor falls out of the model. Alternatively the geographic factor could be so strong that other important variables fall out of the model.

What works?

In our experience the best way to address the challenge is to build distinct models for each key market. In this way a weak, but potentially important geographic factor, is incorporated into your targeting. At the same time a strong geographic factor is incorporated because you will develop models at the MSA level (or some other geo level).

If you are a large marketer you must fight for every 1/100th of a percent of response. In our experience, building localized models for key markets delivers critical competitive advantage.

Oct 23

The AccuData team is home after a very productive week at the DMA and I have to say that this year’s show was a great success.  This seemed to be a far more serious crowd than last year.  Perhaps it was San Diego vs. Vegas or maybe CFOs simply didn’t approve non-essential travel.  While the reason is a mystery, the floor and the sessions were filled with a healthy crowd looking for solutions and to learn.  Good stuff.

The Brain enjoyed the show as well and several hundred t-shirts and Twitter followers later he’s developed quite a following.  Next year we may have to provide a bit of security for him - there were some unruly groupies and a couple of reporters that tried to sneak into his hotel room.  I just saw his last Tweet - I guess the show was a bit much and he’s tired.  So no new Tweets for at least a week I’d guess.  We’ll see.

Booths are always fun to evaluate.  On the “what were they thinking” scale, one company bought a 10×20 space and had only a chair and small round cocktail table along with minimal signage.   But this company DID hire an actor, dressed and painted to look like a bronze statue, to jab people as they passed by the booth, scaring some of them, amusing others and baffling me.  But this company’s booth traffic seemed good and I hope the show went well for them.  None of the booths really wowed me but there were many good ones and it was clear that most companies put a good deal of effort into their show presence.

AccuData certainly did and while we’ll see how leads and deals play out, the show went well.  I just wish The Direct Marketing Association would allow show exhibitors to do more direct marketing pre-show.  The delegate list was released late, email and telemarketing are prohibited and there are relatively few DMA-sponsored mechanisms for selling.  I don’t get it.  Perhaps this is why the DMA is facing so much emerging competition for mind share and marketing dollars from other associations and companies creating new forums for learning and selling.

Oct 19

DMA09 opened last night.  AccuData is a sponsor this year and it was nice to see the AccuData logo on large banners around the hall as well as the conference notepads.  This year we have a redesigned booth, smaller than last year’s and we believe it is much more effective at communicating with clients and prospects and is less expensive as well. 

Keeping costs down is really important for AccuData because we are one of the most cost-effective providers of database marketing services out there and to keep our prices down we must constantly think about our expenses.

Today is the day we’ll find out if the show is going to be a win or not.  Will we have a show filled with vendors staring at each other or will there be delegates looking for solutions? 

San Diego, the show venue, is an amazing city.  Clean, sleek, easy to navigate - San Diego was a good choice for the show’s venue.

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