Tag Archives: Direct Marketing

The tricky side of advertising

The tricky side of advertising

Did you see the premier of AMC’s new series “The Pitch” last night? It was a double premier.

In the first hour, agencies from NYC and Las Vegas pitched for a Waste Management assignment; in the second, it was LA against Durham, NC. The Pitch is real and the business an agency can win is real. AMC has ordered eight episodes.

The show’s pretty good, at least to this industry vet. I’m not so sure that it’ll appeal to a mass audience, but who knows? So much on TV is a complete mystery to me, from Jersey Shore to the caterwauling contest called “The Voice”.

I still get excited thinking about a big marketing pitch.

I’ve lived through many a pitch, some just for the direct marketing business (which is rarely, and should never be, a creative shootout), and some with general advertising partners like TBWA, Saatchi & Saatchi and J Walter Thompson (JWT).

Our agency doesn’t pitch anymore. We stopped when I realized that a lot of clients were using the pitch process to get free ideas. I thought of pitching again a couple of years ago but the paperwork you have to fill out in advance puts the FDA’s new-drug paperwork to shame.

Our business often comes after people hear me speak.

Then they call us and new business develops from simple conversations with potential clients. Some are referrals, some come out of the blue, and some we find ourselves by reaching out.

We get a lot of inquiries from financial companies. They all say they can’t do anything too edgy or they’ll lose credibility. Some want to try a new approach but stay conservative – in other words, do exactly what they’re doing now, only different.

Banks, brokers and insurance companies aren’t the only tippy-toers. We spoke to a restaurant owner last week who said you cannot do anything unique for a restaurant. Maybe I’ll show him the new ad for the Four Seasons in New York that talks about how unique the restaurant is and why it’s worth the high prices. Despite its bad grammar and some misspellings, it’s not a bad ad.

This ad for Smith and Wollensky has some interesting Kenneth Cole type copy and simple graphics. It works.

I’m always hoping that our next new client will take a chance, like the CMO of Subway, Tony Pace, did when he hired the agency that had found a rapper who had gone viral on YouTube. They even brought the guy to The Pitch for a freestyle rap. They took a chance, and it worked.

Subway CMO, Tony Pace

Oh, how I wish Subway will call us for marketing programs.

If you’re about to become some agency’s next great client (especially ours), I hope that:
1. You care passionately about your company.
2. You give the strategic planners and creative folks a chance to do work that might seem weird to you; it doesn’t have to appeal to you personally unless you personify the target audience. You can always pull it back a bit. Free swinging thinking often results in amazing revenue.
3. You test carefully without worrying too much about the budget. Worry about the upside, not the downside.

If you can do that, we can deliver terrific ads that will do two wonderful things: build your business and make your brand memorable.

Eight smart ways to find new customers now!

Eight smart ways to find new customers now!

(Get the most from your mailings to potential customers using tips from a direct-marketing pro.)

What does it take to get someone to buy a car? A personalized letter promising a $1,000 discount can go a long way. That’s what I discovered years ago in Canada when I worked on a direct mail campaign for Ford, promoting Lincoln’s Town Car, Continental and Mark VIII. We told recipients that all they had to do was visit a dealership, negotiate their best price and then produce the letter to save another $1,000. Sales took off.

Consumers are bombarded these days with advertising messages. Direct marketers like me are part of the reason. For 12 years in New York and now in Hollywood, Fla., I have run Lois Geller Marketing Group, a marketing advertising firm with big clients such as J.P. Morgan Chase, as well as other large companies.

Sending an offer by mail can cost anywhere from $1.00 to $150 for each prospect, depending on the different components of the campaign.

For the most part, direct mail is more expensive than advertising, or e-mail or social media, and it can also be much more effective in the long run.

How do you get the most out of the money you invest in your direct mailings, whether you handle them in-house or hire an outside firm? Here are eight of the approaches I recommend to clients.

1. Save the postcards for vacation. The classic letter in an envelope has a much better chance of generating a significant response, in my experience. To most consumers, serious mail comes in a letter, which is private. The act of opening an envelope and unfolding the letter is engaging.

A few years ago my company created a two-page letter for a firm that was selling a $2,000 annual subscription service to advertisers and ad agencies. Our client had done fairly well with a post-card campaign. It was generating paid orders at a rate of about 0.75%. We thought we could do better. We created a letter to the ad agencies that said, “If you can send me an e-mail with the 4 letter code above, I’ll send you a secret that will help you land new business you didn’t even know was loose.” Each recipient had a private code, available only in the letter. Paid response increased to 11%.

2. Impose a deadline. Give recipients a valuable freebie that they can’t get any other way than by responding now. It should fit what you are selling. For instance, if you were a tax preparer trying to attract new clients for next year, you might send a mailing in January of 2013 offering the first 100 new customers a free leather binder to store their 2012 taxes – and tell them that the offer would expire on March 15. Potential customers who can’t procrastinate will act immediately. We call this a “call to action”.

3. Emphasize your product’s benefits, not just its features. Say you are selling a teapot with a spill-proof spout. Rather than simply mention the spout’s spill-proof shape, focus on the problems it will prevent: burned hands, ruined suits, embarrassment.

How do find out what your prospects will value most about your product? Ask them. For instance, if you were selling the spill-proof teapot, you might want to chat with tea buyers at your local supermarket to find out what teapots they use and how these pots could be improved.

4. Outdo the competition. If you are a dry cleaner, and ABC Cleaners down the street is offering 20% off to new customers, give your regular customers 25% off as an incentive to stay loyal.

5. Use real people. I have found that when we include photos of actual customers or employees, rather than models, in our mailings, the response rates go up. Your direct marketing agency or art director can help you arrange an inexpensive photo shoot and get the permission you need to incorporate the pictures into your ad.

6. Rent the right list. List brokers will offer to sell you all kinds of lists. Ask for those with recent high responses to offers to products similar to yours. I suggest using a list broker who’s a member of the Direct Marketing Association (www.the-dma.org), a reputable trade group.

7. Get personal. If it looks like your letter and envelope might have been in the hands of a real human being at some point, customers will be more likely to open it. Sign your letter in blue ink. Use the same ink to highlight a paragraph or to add a margin note. (The art director on your campaign can help you add your black ink “handwriting” on the layout and change it to blue.) Try a real stamp (or stamps) on the envelope. The more unusual the stamps, the better. Use a blue signature line above the return address.

8. Repeat your offer in the P.S. People often read that one first.

When we mail our own newsletter, I usually write personal notes on about 100 of them. I might mention someone’s family or a catalog their company had done. Typically, about 50% of that group will respond. In an e-mail driven world, a human touch can have a dramatic impact. So, try it.

How to write a marketing plan

How to write a marketing plan

A one-page marketing plan from 1955
envisioned a future for Jack Daniel’s
based on its heritage as a whiskey
made by real people in Lynchburg, Tenn.

From a book review in Fortune magazine 12/26/11

There are two versions of every plan, the big picture version and the detail version. Assuming the big picture version is realistic and carefully thought out, the detail version should come together nicely.

Try as I might, I can almost never get through a presentation of the big picture without someone interrupting to ask about a detail. Our creative director, Mike, who isn’t known for beating around the bush, says this is like asking a construction foreman about the color of the bathroom wallpaper in a house that doesn’t have a foundation yet.

People like details. They’re as important in advertising and direct marketing as they are in selling a house. They’re just not all that important to the people who are building the house. If the foundation, structure and utilities are right, you can have any color wallpaper you want.

So let the builders work.

We’ve gone through some of this in previous posts, but, just in case you missed them, here’s a summary.

All plans begin with Background. There are different terms for this but they all mean Background. Somewhere in the Background, there’s a simple rationale for why you’re involved in this effort in the first place.

Backgrounds are deceptively easy in that anyone intelligent and knowledgeable can write them. But they’re hard work. Think of spilling a 5 pound bag of sugar on the kitchen floor. Anyone can clean it up, but it’s hard work. Backgrounds are deceptive in another way, too, because, although they’re part of the big picture, they’re full of relevant detail.

Out of the Background comes the Objective, ONE Objective. Then comes the hard part: Strategy.

The next hardest part is simply a matter of discipline on fourcounts : staying on budget, staying real – guided by the Background, staying on target according to the Objective, linking every element of the execution to the Strategy. Finally, comes the hardest part of all: handing the big picture version of the plan, your baby, over to the detail people (even if you’re your own detail team).

Some details will be irrelevant to the plan and that’s fine as long as they don’t conflict with the already existing brand strategy. Other details will deviate from the core components of the big picture. Squash them.

Test, fine tune, roll out. Get and keep customers. Make money.

We all talk about Strategy. What is it?

We all talk about Strategy. What is it?

For 10 years I happily taught the lead direct marketing course at New York University. Every year one of the three hardest things to get across was the concept of Strategy.

Also, a lot of our clients never did grasp the concept. One of them, which shall remain nameless – my lips are sealed – created an odd hybrid they called “Strategic Objective”.

Strategy Is The Big Deal.

Strategy is part of a plan, part three of a typical marketing plan. The first two parts are Background and Objective. Only when those two are in place can you begin to develop the Strategy.

A gigantic barrier to developing a strategy is that there’s a part four, Tactics. People confuse Strategy and Tactics; their subconscious does it to them because Tactics are easy. Since strategy is hard, most people run to tactical and subtactical issues like budget, creative, color, font, slogan.

Look up “Strategy” in Merriam-Webster.

If you look strategy up in the dictionary, you’ll find something like this: the science or art of planning and conducting a war or a military campaign; a carefully devised plan of action to achieve a goal, or the art of developing or carrying out such a plan.

At NYU we started with a simpler approach: Generals do strategy; everyone else does tactics, based on the Generals’ strategy. And there’s a trickledown effect: your boss’s strategy becomes your objective and so on down the line. In an organization, the whole Strategy and Tactics thing is like a pyramid scheme. Strategy starts at the top among a few experts (in theory). People who execute the strategy develop their own mini-strategies.

It starts with understanding the objective. What, exactly, do we want to achieve? Exactly means numbers, dollars, timelines:

“Sell 250,000 widgets at an average price of $29.99 in 2012.”
“Recover 25% (500) of lapsed customers (2,000) by Q3, 2012.”
“Increase average order size 10% by Q2, 2012.”
“Move 50% of business to our website by the end of 2013.”

The objective has to be realistic. If you sold only 2,500 widgets last year with a marketing budget of $50,000, you’re not going to sell 250,000 in 2012 without a serious increase in budget.

You can have dozens of objectives – it keeps people happy – but there Is always only one real objective and one corresponding strategic statement.

At NYU we used the example of the Trojan Horse. To make a long story short, the horse was a tactic. The objective was to capture the city of Troy. The strategy was to get someone inside to open the city’s gates without the Trojans knowing about it. The Greeks undoubtedly considered a dozen or more tactics and eventually settled on the horse. After that, all the tactics fell into place.

In other words, strategy is the legendary Big Idea. And it is usually an obvious idea – once someone says it.

In marketing, especially direct marketing, there are a great many sub-strategies: testing, target audience, creative, list, offer, databasing, upsells, etc.

When we ran Ford of Canada’s first-ever direct marketing program, we spent a lot of time gathering information (Background) and we developed an Objective based on unit sales of mid-range vehicles. Then what?

We quickly realized that we’d have to build a database of car owners (provincial registrations were – and still are – unavailable in Canada). And that was our strategy: Build the proprietary database then stroke it. The ensuing program sold an awful lot of cars, generating bottom line revenue the company would not otherwise have earned of 14 times the marketing cost. It won a lot of Gold RSVP Awards from the Canadian Marketing Association.

We’d have had no hope without the core strategy, which was obvious once we came up with it.

What is your strategy for 2012?

The irresistible lure of “this thingie FREE when you buy that thingie!”

The irresistible lure of “this thingie FREE when you buy that thingie!”

This ad was in the January 17, 1969 Life Magazine. It featured a simple “gift with purchase” offer, the kind we still use in direct marketing.

You bought the GE vacuum cleaner then you sent the hang tag with the on-page coupon and GE sent you a Tensor lamp for free. You had a month to take advantage of the offer which makes for a strong “call to action”.

Back in 1969, the Tensor Lamp was new and cool so it had some cachet.

Things haven’t changed much in 42 years.

Gifts with purchase still work. A very common one these days is a designer makeup bag with cosmetics purchase in a department store, especially Macy’s.

The gift has to be (perceived to be) valuable enough for people who are undecided to make their decision.

Ginsu knives were successful because of that technique. They kept showing infomercials demonstrating these amazing knives will cut through a tin can, a radiator hose and still be sharp enough to slice a tomato – paper thin! When you bought the set, your free gift was sometimes a set of steak knives absolutely FREE! Read the rest of this entry

Direct Marketing: Why Not?

Direct Marketing: Why Not?

The other day I was window-shopping in my neighborhood and dropped into King Jewelers in Aventura. I happen to have been born with a “Jewelry Gene”. All of the sparkle and glitter of the jewelry, shining through the glass cases, made my eyes light up!

As I walked around the store, I picked up a couple of brochures. They were beautifully made, with a glossy finish and cardstock. I couldn’t help but wonder…why were they sitting on a counter? Why don’t they mail them to their top customers?

One of the brochures I picked up was for Chanel; it featured their J12 Chromatic watches. The cost to make a brochure of this caliber is not cheap. The high gloss, heavy paperweight, with folds inside AND a sleeve… not a cheap project at all.

Another one I picked up was for King Jewelers. It was a book really, with 70 pages of Harry Winston, Chopard, Judtih Ripka, and Jaeger-LeCoultre gracing the pages.

Printing brochures and catalogs like this is expensive. The way I see it, they’re missing an opportunity to send them to their best customers. Read the rest of this entry

Lemar Scott’s First Guest Post

Lemar Scott’s First Guest Post

Hi! I am an intern at Lois Geller Marketing Group and it is my second week here. Lois asked me to do a guest post on her blog so I sought the advice of our Creative Director, His most regal majesty- Mike. He suggested that since I have little experience and only a small (but rapidly growing) knowledge base, I might consider writing about something that I know.
So here goes….

I signed up as a “Guess List” member along with a group of other shoppers who agreed to receive texts about special offers and new products.

Today, I got a text and what a mess!

It was too long; way too long to hold anyone’s attention. The main point was on page two. Page Two! Texting operates on an entirely different level than direct mail copy which is fine if it’s long, even very long. How do I know this? Well, there’s common sense, of course, but I’m a near-addicted texter. Just ask my friends.

So I decided to tell you about Mobile Marketing: My Experience.
Messages to-on-the-go mobile devices can wield a lot of marketing power, assuming they’re messages that people want to read. Most texters are like me, average Joes with smart phones, tablets, navigation systems, e-readers, and MP3s. We’re not known for long attention spans and We wrt lk ths (we write like this).

So, using common sense, I developed The Intern’s Short List of four points for effective commercial text messages:
1) Texts under 160 characters. For one thing, 160 is the max set by phone companies. And readers like messages that are that quick, at-a-glance easy and right-to-the-point. Plus, we don’t want to pay for several pages of texts just to get to your promotion! We’re big fans of direct marketing … and we’re looking forward to location based real-time marketing.

2) Wandering off topic is annoying. It’s OK to be inspired by an approaching holiday or current event, but a lot of marketing texters seem to get carried away. Readers can get uninterested and even disoriented trying to follow their thoughts.

3) Texts should look interesting, don’t you think? Consider the differences between these two versions of the same message:
a) Come in tonight for an exclusive release party at eight.
b) Come in TONIGHT for an *exclusive* release party @ 8!!!
You know that b) is texter-style, right?

4) And I do wish they wouldn’t harass us! Prospects are wary of deals because it seems that every other offer is not real. Unless we specifically ask for more, I suggest that texts be limited to perhaps four or five a month. We like to see message inboxes filled with texts from buddies — not businesses!
So please comment and tell me about your mobile marketing ideas. I beg you!

Your friend,
Lemar Scott: The Intern