Boost Returns on Your Direct Response

Investment

Boost Returns on Your Direct Response

Investment

Carrie Hoye LLCFor

ASTECH Strategic Marketing RoundtableAugust, 2005

Carrie Hoye LLCFor

ASTECH Strategic Marketing RoundtableAugust, 2005

Carrie Hoye LLC

The Marketing Landscape Has

Changed

The Marketing Landscape Has

ChangedProliferation of media and

distribution channelsDeclining trust in advertisingMultitasking by consumersDigital technologies have turned

control over to the consumer

Proliferation of media and distribution channels

Declining trust in advertisingMultitasking by consumersDigital technologies have turned

control over to the consumer

Carrie Hoye LLC

Why Direct Marketing?Why Direct Marketing?

It is a measurable, tested marketing method

It is a $1.9 trillion business, growing at 9.6% annually

And there’s still a responsive audience

It is a measurable, tested marketing method

It is a $1.9 trillion business, growing at 9.6% annually

And there’s still a responsive audience

In 2002, over 60 percent of the adult U.S.population were Direct Marketing consumers

Carrie Hoye LLC

#1 Start Your Direct Marketing Plan

by Starting Over

#1 Start Your Direct Marketing Plan

by Starting OverDefine (or redefine) your strategyDetermine your critical success

factors- What determines your business

success?- Circulation- Circulation Revenue- Topline Organization Revenue- Cash Flow

Define (or redefine) your strategyDetermine your critical success

factors- What determines your business

success?- Circulation- Circulation Revenue- Topline Organization Revenue- Cash Flow

Carrie Hoye LLC

#2 Do A Baseline Evaluation

#2 Do A Baseline Evaluation

Run an asset / liability assessment of your circulation and marketing organization: Do you have the tools you need to

be successful? Can you achieve your goals with

your current budget, org structure, talent?

Run an asset / liability assessment of your circulation and marketing organization: Do you have the tools you need to

be successful? Can you achieve your goals with

your current budget, org structure, talent?

Carrie Hoye LLC

Encourage your staff to constantly challenge current approach

Overtly recognize and reward seekers of new ideas

Encourage your staff to constantly challenge current approach

Overtly recognize and reward seekers of new ideas

#3Develop a Learning Culture#3Develop a Learning Culture

Remember, you’re not on your own. This is a replicable process and ideas are transferable.

Helpful Hint!

Carrie Hoye LLC

#4 It Takes a Village#4 It Takes a Village

Growing readership isn’t just a Circulation issue

Find your Editorial advocates who have a desire to grow readership

Collaborate with Brand Marketers Develop job sharing opportunities Set goals in tandem and share

accountability

Growing readership isn’t just a Circulation issue

Find your Editorial advocates who have a desire to grow readership

Collaborate with Brand Marketers Develop job sharing opportunities Set goals in tandem and share

accountability

Carrie Hoye LLC

#5 Speaking of Branding…

#5 Speaking of Branding…

What is your customer’s perception of your newspaper?

Capturing the Voice of the Customer eliminates the guesswork

What is your customer’s perception of your newspaper?

Capturing the Voice of the Customer eliminates the guesswork

Brands are defined by consumers, not by marketers!

Carrie Hoye LLC

#6 It’s true: Keeping Customers is Cheaper. #6 It’s true: Keeping

Customers is Cheaper. Focus on the call center

It’s where the majority of your cancellations are captured

It’s the best source of VOCGet aggressive with test cells -- find

out what it takes to keep a customer

Focus on the call center It’s where the majority of your

cancellations are capturedIt’s the best source of VOCGet aggressive with test cells -- find

out what it takes to keep a customer

Look to the experts. Credit card issuershave the best call center retention practices.

Helpful Hint!

Carrie Hoye LLC

#7 One to One Marketing May Not be

Your Goal…

#7 One to One Marketing May Not be

Your Goal……but understanding clusters of

customer behavior should be!…but understanding clusters of

customer behavior should be!

LIFESTAGE

DEMO EX vs NON

GEOETHNICITY

LIFESTYLE

Carrie Hoye LLC

# 8 What Drives Response?

Remember the Fundamentals

# 8 What Drives Response?

Remember the Fundamentals

Creative30%

Offer30%

List40%

Carrie Hoye LLC

#9 Planning Your Campaigns

#9 Planning Your Campaigns

First things first…First things first…

LIST: Who

do I want toreach?

OFFER: What

will be mostcompelling?

CREATIVEHowcan I

communicate?

Carrie Hoye LLC

#10 The Power of the Outer

#10 The Power of the Outer

When developing creative, start with the customer’s first impression: The Envelope. Stamp vs. indicia Bold headlines Amusing or teasing Visually engaging Unique paper stock Laser personalization Closed outer with “hand lettering” Clean white, no return address

When developing creative, start with the customer’s first impression: The Envelope. Stamp vs. indicia Bold headlines Amusing or teasing Visually engaging Unique paper stock Laser personalization Closed outer with “hand lettering” Clean white, no return address

Carrie Hoye LLC

#11 Test a New Kind of Premium

#11 Test a New Kind of Premium

It doesn’t need to be expensive, but it does need to have perceived value

Take what you already have, and position it as a unique premium: Access to editors and columnists Repurposed content Past editions online

It doesn’t need to be expensive, but it does need to have perceived value

Take what you already have, and position it as a unique premium: Access to editors and columnists Repurposed content Past editions online

Carrie Hoye LLC

#12 Don’t Squander a Sample

#12 Don’t Squander a Sample

A sample is a powerful selling toolIf you are spending $$$ on a

sampling program, be sure your topper has a strong offer: Competitive differentiators Simple, compelling offer

A sample is a powerful selling toolIf you are spending $$$ on a

sampling program, be sure your topper has a strong offer: Competitive differentiators Simple, compelling offer

Carrie Hoye LLC

#13 Know Which List Meets Your Needs

#13 Know Which List Meets Your Needs

Sources: Compiled -- best for gathering large

quantities of names $ Direct Response -- proven

responders, hotline respond best$$

Your Database -- enhanced with purchased household information

Sources: Compiled -- best for gathering large

quantities of names $ Direct Response -- proven

responders, hotline respond best$$

Your Database -- enhanced with purchased household information

Email lists are more unpredictable than mail lists, because they deteriorate faster.

Carrie Hoye LLC

#14 Handle Your Database With Care#14 Handle Your

Database With Care Develop and adhere to:

a strict maintenance schedule frequent updates and appends

Develop and adhere to: a strict maintenance schedule frequent updates and appends

You won’t get accurateknowledge from inaccurate data

Helpful Hint!

Carrie Hoye LLC

#15 Borrow From the Experts

#15 Borrow From the Experts

Many control packages have been in use for years

If you’ve seen a package more than once -- chances are it’s working

Have your staff “dissect” direct mail packages for copy & creative and find winning themes

Many control packages have been in use for years

If you’ve seen a package more than once -- chances are it’s working

Have your staff “dissect” direct mail packages for copy & creative and find winning themes

Good News! Positive results are often replicable.

Carrie Hoye LLC

#16 Hire a DM Expert#16 Hire a DM Expert

Save money through an understanding of: Postal sortation Envelope aspect ratios Paper weight Ink color Print run size Agency fees And a general understanding of appropriate

CPM’s for envelopes, letters, BREs, FSIs, etc…

Save money through an understanding of: Postal sortation Envelope aspect ratios Paper weight Ink color Print run size Agency fees And a general understanding of appropriate

CPM’s for envelopes, letters, BREs, FSIs, etc…

Carrie Hoye LLC

#17 Respect the Science

#17 Respect the Science

Use past marketing results as your guideline for response projections

Use statistically significant sample sizes

TEST ONE VARIABLE AT A TIME Project CPOs at rollout quantities

when determining campaign success

Use past marketing results as your guideline for response projections

Use statistically significant sample sizes

TEST ONE VARIABLE AT A TIME Project CPOs at rollout quantities

when determining campaign success

Direct response test rules apply to telemarketing and internet!

Carrie Hoye LLC

#18 Use Online Communications as Your Test Kitchen

#18 Use Online Communications as Your Test Kitchen

Easy to implement Immediate results Inexpensive If done right, online communications

can be your greatest path to loyalty

Easy to implement Immediate results Inexpensive If done right, online communications

can be your greatest path to loyalty

Carrie Hoye LLC

#19 Manage Your Vendors

#19 Manage Your Vendors

Develop pay for performance partnership agreements

Don’t let your consultant “move in”

Limit number of partnerships to maximize influence

Develop pay for performance partnership agreements

Don’t let your consultant “move in”

Limit number of partnerships to maximize influence

Carrie Hoye LLC

#20 Follow Through on Your Investment

#20 Follow Through on Your Investment

Stay the course Build upon your successes, analyze

your failures Recap EVERY campaign for key

learnings and strategy adjustments Start mapping out your 2006 multi-

channel, multi-variate test plan today!

Stay the course Build upon your successes, analyze

your failures Recap EVERY campaign for key

learnings and strategy adjustments Start mapping out your 2006 multi-

channel, multi-variate test plan today!