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Transcript of Helping Small Business Use Email to Improve their Direct Marketing Success Wendy Lowe Regional...
Helping Small Business Use Email to Improve their Direct Marketing Success
Wendy LoweRegional Development [email protected]
Agenda
Overview – Small businesses marketing challenges
What is Direct Marketing?
Creating an integrated multi-channel direct marketing program
Tips and Tricks: How email marketing can complement your direct marketing plan
Top 6 Small Business Marketing Challenges
1. Defining target markets2. Developing a marketing plan3. Finding time & resources for marketing4. Increasing repeat business5. Getting consistent referrals6. Increasing sales conversions
Source: Patrick Zuluaga
All can be addressed usingDirect Marketing
Total annual marketing spending by small businesses
Source: Hurwitz & Associates Small Business Survey. June, 2009
Why is Direct Marketing Appealing to Small Business?
Can target recipients precisely Reach those likely to be interested in your products or services. Not a “spray and pray” approach
Can measure the success of campaigns accurately by analyzing responses
Can create a campaign to fit large or small budgets. Can launch a campaign relatively quickly. Can test messages in small groups before going to entire list.
Use direct marketing to test an idea, a pitch, a message, before you spend the big bucks on advertising.
Allows you to see what works and what doesn’t
Source: Entrepreneur, Jack Ferrari
Why is Direct Marketing Appealing to Small Business?
Direct Marketing = Direct Response Focus limited resources on activities most likely to produce
results Can protect against overwhelming response
With advertising, you don’t know what kind of response you’re going to get. You need to be able to manage the response.
Can start with a modest-size mailing to study the response and make sure the business can handle the volume.
Source: Business Link
A direct marketing campaign can help you to achieve the following key objectives:
Increase sales to existing customers Build customer loyalty Re-establish lapsed customer relationships Generate new business
Source: Business Link
Agenda
Overview – Small businesses marketing challenges
What is Direct Marketing?
Creating an integrated multi-channel direct marketing program
Tips and Tricks: How email marketing can complement your direct marketing plan
What is Direct Marketing (DM)?
Delivering promotional messages directly to customers or prospects on an individual basis as opposed to through a mass medium.
Where deal is done directly between the manufacturer and the customer No channel intermediaries i.e. distributors, retailers,
wholesalers, agents or consultants.
It does not include the use of traditional channels such as TV, newspaper or radio.
Source: Marketing Teacher.com, Wikipedia
Direct marketing is predominantly used by small to medium-size enterprises with limited advertising budgets that do not have a well-recognized brand message. A well-executed direct marketing campaign can offer a positive return on investment as the message is not hidden with overcomplicated branding. Instead, direct advertising is straight to the point; offers a product, service, or event; and explains how to get the offered product, service, or event.
Source: Wikipedia
How does Direct Marketing differ from other types of marketing?
1. Messages are sent direct to the consumer directly Most often requires a contact list including postal or email
address, telephone or cell number
2. Messages always include a specific “call to action” Call our toll-free number Visit the store Buy online
3. Responses can be tracked and measured
The Internet has turned Direct Marketing into a powerful selling tool
Inexpensive Campaigns can be launched quickly Gives consumers another way to interface with the company
In years past, DM follow up was to phone company directly Now: websites, landing pages: can provide more information
Easier to measure the results of a campaign Example: email driving people to a landing page Can track the number of people who open the email, click to the
landing page, purchase the product Can be used effectively to grow customer and prospect lists
Quick Fact
Each dollar spent on direct marketing yields, on average, a return on investment of $11.73, versus ROI of $5.23 from non-direct marketing expenditures.
Direct Marketing Association, 2009
Most important component of Direct Marketing
Your list! Prospects Current Customers Former Customers Members
Success with Direct Marketing is directly related to the quality of the list. Quality of information – is the address
current? Is the email address correct? Timing of list development – e.g. list of
home buyers: are they still on the market to purchase a home?
Do the people on the list represent the business’ target market?
Types of Direct Marketing
Direct Mail Telemarketing Mobile Marketing Door-to-Door flyer marketing Email Marketing Others not covered:
Direct Response Television
What is Direct Mail?
Advertising material sent directly to home and business addresses Fliers/BrochuresCatalogue distributionPromotional lettersCoupons
Typically includes opportunity for ordering online, in-store, or through telephone.
Variable data print: DM pieces are be digitally printed with headlines, messages and images tailored to the individual. e.g. Dear Wendy
Uses of Direct Mail
Sell products or services Raise awareness of products or services Drive people to your website Test new markets Obtain leads for follow-up Prepare prospects for a telephone follow-up
Benefits of Direct Mail Targeted: you pick the people you want to reach.
Flexible: many different types of mail formats to choose from. Letter Postcard Sample Catalogue Gift
Personal: If segmented appropriately, you can address the recipient’s interests, needs, and pain points. Can even address them by first name.
Measurable: can track the success of the campaign.
Tangible: recipient has something in their hands they can refer back to.
Source: United States Postal Service
Quick Fact
98% of consumers bring in their mail the day it’s delivered, and 77% sort through it immediately.
Source: United States Postal Service
Objections to Direct Mail
Many people don't like unsolicited offers and are skeptical of their validity
Some people too busy to open what they view as "junk mail."
Requires thorough maintenance of mail lists. Address must be validated and updated regularly
Concerns about the environmental impact of resources used for direct mailings.
Can be expensive – depends on list sizeSource: Smallbisinessnotes.com
Success is primarily dependent on:
List Are you going after the right audience?
Offer Is the offer relevant and attractive to the target audience? Is it easily fulfilled? Is the timing right?
Creative The type of direct mail piece: letter, brochure, catalogue,
sample Size and weight of piece Branding, images, tone, copy
Effectiveness of Direct Mail
Expect between 1% and 3% response rate. e.g. a 1% sales rate on 1,000 direct mail pieces = 10 sales.
Can be as low as 0.25% for high value items or in a very competitive market.
Consider ROI: If the cost to prepare and mail 1,000 pieces exceeds the profits
you'd realize from 10 sales, go to another plan. Most expensive portion of a direct mail campaign is postage cost
Consider cost of design and printing For a direct mail ROI calculator:
http://www.bplans.com/business_calculators/directmailroiwindow.cfm
Source: Canadian Marketing Association
Direct Mail Tip!
Follow-up mailings generally increase response, by an additional 25% to 50% over the initial responses from the first mailing.
Source: Canadian Marketing Association
What is Telemarketing?
Promotion of products or services where consumers are contacted by phone.
Second most common form of direct marketing. Can be done in-house or outsourced to a telemarketing
company US national Do-Not-Call registry went live on October 1, 2003.
Illegal for telemarketers to call anyone who has registered. Over 62 million people signed up in first year. Telemarketers are required to search registry at least once
every 31 days and drop from their call lists the phone numbers of consumers who have registered.
https://telemarketing.donotcall.gov/
Uses of Telemarketing
Direct sales Lead generation Appointment scheduling Verifying information or cleaning lists
e.g. Populate a database with decision-maker names Research and surveys
Learn more about your customers Learn more about your market and what competitors are doing
Event invites Follow up on responses to direct-mail campaigns
Benefits of Telemarketing
Measurable results
Can gauge the customer's interest immediately
Can explain technical or complex messages more effectively
Generate marketplace and customer insights Can use this information for segmentation purposes later
Build brand awareness
Test your message to be used in other campaigns
Quick Fact
A telemarketer will reach voicemail on about 70-95% of dials, so always have a “script” ready to leave a professional message.
Objections to Telemarketing In-house telemarketing:
Can be expensive to set up operations Personnel, training, phone lines, furniture, floor space, computers, and software.
Outsourced telemarketing: Can be expensive, depending on list size and objectives
Must have well-trained personnel on the phones Scripts that sound canned don’t work
Don’t have a list with phone numbers.
List management Lists must be updated regularly. Must comply with national Do-Not-Call registry regulations
Many people find marketing calls an unwelcome interruption
Cost of Outsourced Telemarketing
Costs are based on project type, telemarketer skill level, industry expertise, and when calls are made.
Additional fees: initial setup, script preparation, training, programming, and reporting.
Rates: ~$25 to $60 per hour. Large telemarketing firms require minimum work order of
1,000 to 10,000 person hours per project.
Source: BuyerZone
Cost of Outsourced Telemarketing
Hourly telemarketing costs "$3,300 for 100 hours of telemarketing – includes script."
[cost-reduction services] – Telecommunications CEO, Lone Tree, Colorado
"$3,525 telemarketing setup, script, and 100 hours of calling." [401k plans] – Financial Services Owner, Pasadena, California
"$2,500 - update database info and get email addresses for 3,300 people."
[awareness campaign] – Business Service Provider, Houston, Texas
"$1,000 for an outbound telemarketing campaign. This included script editing, daily reports, and an exit database."
[inventory liquidation] – Retail Office Manager, Walnut Creek, California
Source: BuyerZone
Cost of Outsourced Telemarketing
Per lead telemarketing costs "$150 for 100 leads to follow up direct mail campaign. Agreed
to call each one at least twice to establish contact, and if interested, call until appointment or a no go."
– Financial Services CEO, McKees Rocks, Pennsylvania
"25 leads, with guaranteed 15% close ratio. $800." [refinancing] – Banking Operations, Grandville, Michigan
"$1,400 for 40 leads." [mortgage refinancing] – Financial Services CEO, Elizabeth, Colorado
Source: BuyerZone
What is Mobile Marketing?
Involves communicating with the consumer via cellular or mobile device, to: Send a simple marketing message Introduce them to a new audience participation-based
campaign Allow them to visit a mobile website
Newest form of direct marketing
Source: Quirk eMarketing
Quick Fact
% of population with mobile cellular subscriptions in US: 83.5%
Source: MobileActive.org, 2007
Types of mobile marketing
SMS (short message service) Marketing through text messages 100 million advertising SMS sent out every month in Europe
MMS (multimedia message service) Can contain a timed slideshow of images, text, audio and video Nearly all new phones produced with a color screen are capable
of sending and receiving standard MMS message LBS (location-based services)
Offered by some cell phone networks Sends custom advertising and other information to cell-phone
subscribers based on their current location.
Quick Fact
Over 130 Billion texts are sent each month, up from practically nothing in 2000
Source: SmallBizTrends
Uses of Mobile Marketing
Text Campaigns Fast-food restaurants: order
food for pick-up Order products Event invites Contests Read reviews Send gift hints to friends Text wake-up calls Bar-coded coupons – scannable
bar codes on consumer’s phones
Pay by phone
Image Source: KI Mobile
Quick Fact
In the next two years, three billion mobile coupons will be issued to phones.
Source: Juniper Research
How interested would you be in receiving the following on your smartphone?
Source: Compete’s Smartphone Intelligence, Jan – Feb, 2010
Benefits of Mobile Marketing
Messages can be sent to groups of people quickly and cheaply
Users tend to take their phone with them - easy to reach them with time-sensitive messages
People tend to read every message they get - far less likely to be ignored than other types of direct marketing
Attract new customers
Drive traffic to your business during slow periods
Objections to Mobile Marketing
Requires list of mobile numbers
Limits to the amount of content you can send given size of display.
Personal nature of mobile phones means that some people may find SMS messages intrusive.
Privacy concerns Telecom regulations are currently outdated concerning
unsolicited commercial communications and SPAM Mobile Marketing Association has adopted industry standards
that dictate opt-in to receive messages.
Effectiveness of Mobile Marketing
Starts at $10 - $15 per month Pricing based on:
Number of messages Keywords
7% response rate Consider:
On average 94% of text messages are read 80% of consumers keep their mobile with them all day
Source: SmallBizTrends
What is Door-to-Door flyer marketing?
Where flyers are delivered in targeted areas to homes or businesses. Geographically-focused Best used to promote products or services with mass appeal Three methods:
Solo – where flyer is delivered on its own Shared distribution – flyer is delivered with other flyers News share – flyer is delivered with a local, normally free, newspaper
and also with other flyers. Can use US Postal service to have flyers delivered Used extensively by fast-food industries
Uses of Door-to-Door flyer marketing
Fast-food promotions Food delivery Taxi services Local retail promotions New restaurant opening Spa services Contracting House cleaning Home maintenance Dry-cleaning
Benefits of Door-to-Door flyer marketing
Affordable
Brand recognition
Introduction of new service or product to neighborhood
Can be targeted to a certain geographic region
Significantly cheaper than direct mail: No postage fees required, no envelopes required, no address lists required
Objections to Door-to-Door flyer marketing
Printing costs can be expensive
Fairly generic Can target certain demographics, but can’t target specific
segments Can’t personalize your message
Lower response rates than direct mail
Environmental concerns Some people discard immediately Many people have “No flyers” stickers on mailbox
Effectiveness of Door-to-Door flyer marketing
A typical flyer response can vary from .5% to 25%, depending on your industry, message, and offer Pizza is at the high end, and professional services are closer to
the bottom Cost
~$150 for 1,000 units $199 for 5,000 units
doorhangers.com
What is Email Marketing?
Targets consumers through their email accounts who have opted-in to receive communications.
Objective: Acquire new customers or members Persuade existing customers to buy again Encourage customer loyalty Build customer relationship Lead nurturing
Types of Email Marketing
Newsletters Promotions Press Releases Invitations Welcome Emails Postcards Letters
Benefits of Email Marketing for small business
Inexpensive, effective way to reach prospects and customers
Generates a fast response
Measurable
Effective way to build customer loyalty
Permission-based: Lists built from people who want to hear from you via email
Objections to Email Marketing Deliverability - Difficulty in getting messages delivered through different internet
service providers, corporate firewalls and webmail systems
Inbox competition
Requires ongoing list maintenance Emails must be updated CAN-SPAM compliance: unsubscribe management
Email response decay - Recipients are most responsive when they first subscribe to an email. Can be difficult to keep them engaged.
SPAM concerns
Lack of reporting if working with MS Outlook or web mail to send communications
Effectiveness of Email Marketing
Expect average open rates of 19 – 22% Expect average click through rates of 5 - 6% Expect average non-bounce rates of 93 – 94% ROI: Every $1 spent on email marketing in 2009 brought
$43.62 in return Direct Marketing Association
Source: Epsilon Q2, 2010 Email Trends and Benchmarks
Q2, 2010, North American Industry PerformanceQ2 10 North American Industry Non-
BounceOpen Rate Click Rate Click to
Open Rate
Business Products and Services General
93.1% 23.6% 4.4% 18.8%
Business Publishing/Media General 96.8% 16.7% 4.9% 29.1%
Consumer Products CPG 92.6% 19.8% 10.1% 51.1%
Consumer Products Pharmaceutical 87.8% 24.7% 6.6% 26.7%
Consumer Publishing/Media General 97.9% 14.9% 5.2% 35.1%
Consumer Services General 94.7% 16.7% 4.3% 24.8%
Consumer Services Telecom 93.9% 25.5% 6.2% 24.4%
Financial Serviced CC/Banks 93.0% 31.5% 4.2% 13.4%
Financial Services General 94.5% 31.5% 6.1% 19.4%
Retail Apparel 97.2% 16.4% 3.8% 23.1%
Retail General 94.5% 22.5% 6.0% 26.6%
Retail Specialty 97.4% 18.6% 3.2% 17.3%
Travel/Hospitality Travel Services 94.3% 25.7% 5.1% 20.0%
Source: Epsilon Q2, 2010 Email Trends and Benchmarks study based on 5.6 billion sent emails
Agenda
Overview – Small businesses marketing challenges
What is Direct Marketing?
Creating an integrated multi-channel direct marketing program
Tips and Tricks: How email marketing can complement your direct marketing plan
Steps to creating an integrated multi-channel direct marketing program including Email Marketing
1. Define your target market2. Set Objectives3. Develop your marketing plan4. Ready your list5. Initiate a campaign6. Track your progress7. Repeat
Step 1: Define your target market for the campaign
Who do you want to reach? Existing customers Former customers Prospects Leads Members etc.
Consider: Relationship with your organization – new customer vs loyal
customers Demographic – age, gender, language, income Geographic – where they live, where they work Psychographic – preferences, buying motive, attitude
Target Market Profiles Write a one-page summary on each
target market Who are these people? What do they want from your small
business? Are there certain characteristics
they have in common? What special messaging do I need
to convey? What is going to entice them to act
on my direct mail piece? What is my call-to-action for this
audience? Are there certain graphics or
images that might appeal to this group?
What kind of tone should the direct marketing piece have?
How to learn more about your target market
Conversations – in person or over the phone Periodically call customers
Do quarterly or annual customer surveys – Zoomerang.com Online newsletter sign up forms – ask basic questions
First name, last name Geography Telephone number Date of birth
Preference Centers
How to learn more about your target market
Ask for feedback in your emails Email campaign analysis - opens, click-throughs, etc. CRM systems E-commerce systems
Track what they purchased Track when they purchased Track if they abandoned their shopping cart
Step 2: Set Objectives
What are you trying to accomplish? Increase sales? Promote your business? Launch a new product? Convert website leads? Improve customer loyalty? Attract new customers? Goal specific to your business
Step 3: Develop your marketing plan
Your plan will include multiple components: Target Market Objectives Planned marketing activities (email marketing, direct marketing,
telemarketing, etc.) Strategy for each Messaging for each
Budget Timing – marketing calendar Frequency of reach
Step 4: Ready your list
Email Marketing Load list in email marketing serviceEnsure hard bounces from prior campaigns have been
removed Segment your list (if necessary)
Mobile Marketing Load list in text service
Direct Mail Identify which contacts you want to reachPrint envelopes with addresses, send list to agency, or
postal office Telemarketing
Scrub list against updated Do-Not-Call registry list
Step 5: Initiate your campaignEach activity requires different tactics: Email Marketing
Set up campaign in email service provider
Load contact list Choose template Write content Schedule and send
Direct Mail Gather contact list Write content Design direct mail piece Print and send
Door-to-door flyer Establish territory Write content Design flyer Print and deliver
Telemarketing Gather contact list Write script Train telemarketers Call
Mobile Marketing Set up campaign with texting
provider Gather contact list Write texts Send
Remember your all-important call-to-action!
Aim with Direct Marketing is entice people to take an action!
Be sure to define a very clear call-to-action per marketing channel Email Marketing – Register online Mobile Marketing – Redeem bar code coupon in store Direct Mail – Order through our catalogue Telemarketing – Review the material we sent via mail Flyer – Visit us in store
Clear Should stand apart from other messaging
Remember your branding!
Best advice on branding is to keep an eye on the big guys for best practices
Consistency is king Message Target Market Brand Identity
Message, brand, tone, and call-to-action need to support and be consistent amongst all activities
Step 7: Repeat
Take what you’ve learned Repeat what works Tweak what doesn’t Re-invest in other marketing activities Test new messages, new markets
Keep the momentum going – don’t stop!
Agenda
Overview – Small businesses marketing challenges
What is Direct Marketing?
Creating an integrated multi-channel direct marketing program
Tips and Tricks: How email marketing can complement your direct marketing plan
Email follows traditional direct marketing concepts
Messages sent directly to prospect or customer via email
Case Study: The Lake of Bays Chair Co. (LoBCC)
Small company makes Muskoka or “Adirondack” chairs 5 employees
Owner Admin person 3 woodworkers
Challenge: Maintaining relationships with customers between purchases Increasing repeat business Converting leads into sales
Example 1: Telemarketing and Email Marketing
LoBCC decides to do a telemarketing campaign to follow up after a series of promotional emails
List is former customers who haven’t purchased in over three years.
Intent of campaign is to promote new range of chairs and to welcome them back as a customer.
Call-to-action: Visit us in-store, 25% off coupon expires June 30th
Telemarketing and Email Marketing
Campaign Schedule:
Offer expiresJune 30th
Email #125% offJune 1st
Email #2Reminder25% offJune 23rd
Telemarketing CallJune 7th
Evaluate results
Evaluate results
Evaluate Results.Decide next course of action.
Email Promotion Telemarketing Script
“Hello, it’s Jason from The Lake of Bays Chair Co. I’m calling today to follow up on an email we sent last week inviting you to come into the store to see our new line of Muskoka chairs and to take advantage of our 25% off discount. You last purchased one of our chairs on <date>. I would love to answer any questions that you may have…”
Example 2: Direct Mail and Email Marketing
LoBCC wants to send a Direct Mail piece to leads garnered at a tradeshow in January.
Objective: further qualify leads. Call-to-action: Call for a catalogue. Email marketing will be used to place qualified leads into a
lead nurturing campaign over period of four months leading into spring buying season.
200 tradeshow leads in total.
Direct Mail and Email Marketing
Campaign Schedule:
The Great OutdoorsTradeshowJanuary 15th
Catalogue follow-upAutomated EmailOngoing
Direct MailJanuary 22nd
200 recipients
Evaluate results
Evaluate Results
Lead NurturingEmail #1February 10th
Lead NurturingEmail #3April 10th
Lead NurturingEmail #2March 10th
Lead NurturingEmail #4May 10th
Example 3: Door-to-door flyer marketing and email marketing
LoBCC would like to drive more local business back to the store.
Objective: send flyer to local community promoting their 35th anniversary in the neighborhood sale. Once in store, encourage visitors to register for their email newsletter
Geographic Target: 500 houses in the streets that immediately surround the store
Call-to-action: Come into the store, buy one, get one free.
Door-to-Door Flyer and Email Marketing
Campaign Schedule:
Deliver Flyer to neighborhood500 totalJuly 12th
Evaluate Results
Send newsletterWelcome emailJuly 21st
35th AnniversaryCelebrationIn-storeJuly 15-16
Send series of monthlyNewslettersOngoing
Evaluate Results
Example 4: Mobile Marketing and Email Marketing
LoBCC has been making an effort to collect the mobile phone numbers of their prospects and customers for the last year
Now ready to test their first mobile marketing campaign Running a “Summer Days” contest to give away a patio set Strategy: Send text messages over 2 months to prospects and
customers telling them to participate in their “Summer Days” contest. The email marketing campaign will promote the same contest to those people for whom they only have an email address.
A test to see which channel converts better Call to action: check the landing page to participate.
Mobile Marketing and Email Marketing
Campaign Schedule:
SMS TextLaunchMay15th
SMS Text #2June10th
Email #1May15th
Evaluate results
Evaluate Results
Contest ClosesJuly 10th
Email #2June10th
Final SMS Text MessageJuly 1st
Final Email July 1st
Evaluate results
Use Preference Centers to gather customer data to drive direct marketing campaignse.g. Dell – Email Preferences
Welcome emails After conversion from a Direct
Marketing program How to get started How to use the product How to get the greatest value
from the service Contact info for follow-up Past newsletter issue or other
content Video, podcast or game Share your brand’s story Survey Coupon
Transactional EmailsProvide recommendations for the customer’s next visitGreat cross-sell opportunityReferral program, points program, contests, contact info
Email Newsletters Industry trends Tips Product launch details Events Discounts Cross-sell Referral program Contests Archive online Link to them from social
media sites * Can include a balance of
information and promotions
Send Periodic Thank you’s
Recognize your loyal customers! Send special discounts, offers or
coupons Doesn’t have to cost you a thing
– could be just a simple email saying thank you for being a loyal customer
Use the information you have: e.g. “You’ve been a loyal
customer for 5 years”
Referral ProgramsUsing loyal customers to help grow your email list
Integrate forward-to-a-friend functionality in your emails
Online form Can provide incentives, or not
“Refer a customer and get 1 free month of service”
Engagement through multiple touch points
Social Media Webinars/Podcasts
Events
Print and Online Advertising
Website
Email Marketing
Landing Pages
Direct MailTelemarketingMobile MarketingDoor-to-door flyer marketing
In sum: Develop an integrated approach to direct marketing
Adding email as a supporting role to your marketing globally lifts responses Enables all important repetition Extremely cost effective Helps reduce overall costs of other communication efforts