Spyro Kourtis

on November 28, 2007

category: direct marketing

President and CEO

The big media squeeze

It wasn't that long ago — just fifteen years — that all Hacker Group did was direct mail and a bit of telemarketing. Over the years we developed expertise in other media, partly because we were excited about the opportunities in the online space.

Now we must be multi-channel marketers. There's no choice in the matter. It's to the point where it's just about impossible to depend on a single medium. As media have fragmented, nothing scales the way it used to.

The good news is that most media have some sort of targeting, so there's less waste. Almost all media have become more measurable, and that means we're all more accountable for our marketing efforts.

The bad news is, by focusing ever more tightly on a particular target, all media are becoming far more expensive to use — and campaigns are harder to scale.

Marketers will need to become smarter and smarter to make their campaigns pencil.
 

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Jon Bell

on November 27, 2007

category: creative

Senior Copywriter

More conflict resolution

In my last post to this blog, I talked about how being open to disagreement can help get to a better solution.

Being open is all hunky-dory in those cases where you can tear yourself away from your own point of view long enough to appreciate another perspective. But sometimes you're absolutely certain you're right and the other person is wrong. And sometimes the other person feels just as passionately.

That's the brilliant thing about direct. We can always test it!

Just about any difference of opinion can be resolved in a matter of weeks with a small in-market test. Let the people decide whether the background should be green or blue, which headline is more intriguing, which price point brings the most profit.

We often find that just discussing the test will be enough to give everyone some perspective. A word choice issue in the fine print of lead capture Web site won't make or break a program. Even if I have the precise word for the job — and only the basely ignorant disagree with me.
 

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Spyro Kourtis

on November 21, 2007

category: miscellaneous

President and CEO

Be thankful for your customers.

Everyone loves Thanksgiving. This is a holiday no one can object to. You get to enjoy lots of great food with none of the pressure of gift–giving.

Lots of us will be giving thanks on the big day. But once a year doesn't go far enough.

A sense of gratitude — every single day — is a tremendously positive way to make your company grow.

I start with customers. The minute you start taking customers — or members or donors or voters or whatever your constituency — for granted, your organization begins to die. Even if your product is essential or addictive, people have a choice about whether they buy from you. Even if you have a monopoly on a vital service (and if you do, you're probably not reading a marketing blog), when you make enough customers unhappy, the government eventually steps in. Even government dictatorships get overthrown.

As marketers, we're more aware of the fragile hold we have on our customers than, say, Papa Doc Duvalier. But we can still get complacent. Just because revenue flowed into our accounts last month doesn't mean it will next.

We're grateful for our clients. We're delighted to be working with them. We're excited about helping them grow their businesses. I hope it shows every day.
 

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Carolyn Hansen

on November 20, 2007

category: direct marketing

Vice President/Marketing

We are women. Hear us bleat.

I just read an article announcing a new advertising agency. It's called "Womankind." According to Adweek, they "will use a network of women to conceptualize and execute ads designed to appeal to females."

They say their "premise is that 85 percent of brand purchases are made by women." And yet the agency's founders claim women are "often not influenced by traditional brand messages . . . Most brands fail to meaningfully connect with a powerful buying force."

Huh?

Does this mean that the old accusation that "half my advertising is wasted" is actually an underestimation?

It gets under my old-fashioned-feminist, came-of-age-in-the-80s skin when the "premise" is that 85 percent of brand purchases are made by women, and the conclusion is women must be the victims here.

Because I can do a little math, it looks to me like men's connection to traditional brand advertising is the problem. Do I have it wrong? What am I missing?
 

Comments:


11/20/2007 at 5:16 p.m.
Traditional brand advertising and bad research
I agree that a more traditional branding approach is used in most advertising targeting women, but I also believe there is a lack of research. Here's a little bit of what I've come across in regards to advertising aimed at women. http://benvanavermaete.blogspot.com/2007/09/female-ads-i-guess-arent-working.html
>>Ben van Avermaete, Seattle WA
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Jürgen Stephan

on November 19, 2007

category: integrated marketing

Executive Director, New Business Development

Long Live the ROI!

Marketing folks used to be the big spenders in the company and always got the evil eye from the CFO. Not any longer! These days, marketing spending is getting more and more measurable, and is driving the company's top line and making cost effective choices at the same time.

The online revolution has brought upon us precise ways of measurement from the early buying cycle of prospects to the final stages of buying – the old AIDA model comes to mind, i.e. attention, interest, demand, action. The closer alignment of campaign management systems (CMS) and customer relationship management systems (CRM) has provided powerful tools for marketers to attract new customers and retain old ones before they walk off to the competitor. The marketing lead pipeline and sales lead pipeline are becoming increasingly correlated.

Both consumer and B2B marketers have come up with pretty sophisticated systems and models of how to track the continuum from prospect to customer status for pre-, during, and post-sale scenarios and know how much money to spend along the way.

The essence of direct (response) marketing has lived and maintained that concept for many years: spending money during acquisition / lead generation phase wisely, building up a prospect database to nurture over time, and leveraging a customer marketing database that spawns cross sell and up sell activities.

Many marketers are achieving uplifts in performance by 10-20% or more, while utilizing both offline and online marketing activities in an integrated manner. Take this scenario for example: I get an e-mail from a company x about a product or service y that is followed by a direct mail piece,
which is consistent with the message and has some relevant calls to action, I might just pick up the phone or go on the landing page the company x has set up for me. Oh look, they even have my name on there – they must be pretty serious! At least they're professional. Maybe I'm not ready this time, but perhaps at one of the next e-mail rounds I will be. If I fit company x's profile I will eventually buy.

These days it's not unreasonable for the CFO to ask the head of Marketing for a 10:1 return on investment, i.e. sales achieved over marketing spending. Depending on business category and average selling price that number may fluctuate. Regardless, it's good to familiarize yourself on the new tools and sharpen some older marketing tools for maximum effectiveness.

Vive Le ROI!
 

Comments:


12/8/2007 at 11:47 a.m.
ROI
You and Brian Gilbert must have gone to lunch together and discussed the miserable state of ROI measurement. I mentioned in Brian’s Bog that “You Gotta Wanna,” and regardless of how many seminars there are on ROI probably only 10% of the marketing mangers (and maybe less agencies), have the courage to measure what they manage. We’re getting some articles on the Resources Section of the Sales Lead Management Association that addresses this. I hope we have more contributions in the coming months
>>James Obermayer, Orange CA
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Spyro Kourtis

on November 15, 2007

category: miscellaneous

President and CEO

Where do you want to work?

If you could pick the perfect work environment, what would it be?

Hacker Group has a distinctive work culture. It works extremely well for some people. It's a little too intense for others.

Since the beginning, we've focused on win-win -- for our clients, for ourselves, for our employees and for our vendor partners. We do this by throwing ourselves into client service. That's where the payoff is. If we can help our clients solve their business problems, our company will be profitable too. Then we can compensate our employees. And our vendor partners benefit in the same way when they help us produce error-free work.

Our contract with our employees is about more than just money. Hacker Group is also a place to learn and grow professionally on a daily basis. Expectations are high. We want people on our team who will move us forward. We've had people wash out who were plenty smart enough and even worked hard, but were unwilling or unable to commit to the high standards of our company.

Here, even the big picture, strategy development people have to be able to focus on the details. And the detail-oriented need to be able to look up and get the full perspective, so they know they're going for the right goals.

I look around and see we have a great group of people, a very accomplished team and I'm proud I'm working with them.
 

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Jon Bell

on November 14, 2007

category: miscellaneous

Senior Copywriter

Conflict resolution.

Some people run from conflict. Others will tell you they love a good argument -- often because they take no prisoners and always win. They make the rest of us hate conflict.

I don't win every argument. Not by a long shot. And I despise compromise. But I don't hate disagreement.

In the creative world Hacker Group has built, conflict usually means my work is about to get better. Whenever a colleague disagrees with my point of view or dislikes the copy I've written, I figure I'm about to learn something. After all, I understand exactly what I meant when I wrote the words. But I don't know precisely how it reads to someone else. That's the information I get from disagreement.

Conflict does not necessarily imply compromise.
 

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Paul Jenulis

on November 13, 2007

category: direct marketing

Proofreader

The world's still spinning

I've gotten a little flack for referring to what Hacker Group does as 'junk mail.' It's been suggested that maybe I should refer to it as targeted media, or perhaps simply: direct mail. That's all just fine with me. Call it what you want. But when people ask me what I do, and I explain it, usually they have no idea what I mean. So I just say, "I proofread junk mail."

They get it then.

Whether you refer to it as such, or prefer a more sophisticated option (which is ironic, since most of what is produced is written at a sixth-grade level. Not that we have sixth graders working for us; far from the truth: we have very talented and creative writers who are smart and know how to influence readers), it all comes out the same. You can't hide the fact that a great majority of society would understand the term junk mail. A small portion probably understands targeted media, or direct mail, but that's because they're the ones creating it.

But why is junk mail considered a negative term?

Hacker Group produces it for our clients, clients who are rather happy with what we do for them. I'm sure they don't care what it's called, as long as it produces phone calls, results, and ultimately, financial gains. And Hacker does that quite well. All things being equal, that's all that matters when the sun sets each day.

But I still don't understand the fuss.

Targeted media?

Direct mail?

Either way, I'm reading it Monday through Friday. And Saturday, after I check my own mailbox. Any way you slice it, it's the same thing. Any way you label it: it's the same thing. You say po-tay-to, John over there says po-tah-to. Either way you slice it and fry it, it's French fries...

The point is that we create solid, creative, and innovative packages for our clients. And no matter how you look at it, when all things are equal, it doesn't matter what it's called. If the audience understands it, it's golden. If it does what is intended – changing behavior, convincing someone to purchase something – then it's done its job. Whether it's called targeted media, direct mail, or junk mail.

The point is: why not keep things simple? It's much easier that way, right, when everyone understands, when everyone's on the same page? Simplicity lessens the chance of misunderstanding. The less misunderstanding, the better for everyone involved. It's less stressful. It makes more sense.

Less is more, more or less.

Junk mail doesn't have to be a negative term. It's merely a universal one.

It's okay to say it.

Go ahead, say it.

Junk mail.

See? The world's still spinning.

And no one's any worse off than before...
 

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Jill Kaufman

on November 8, 2007

category: miscellaneous

Vice President/Account Services

Who do you look like on Facebook?

Advertising Age recently asked its readers whether people tell the truth about themselves on Facebook.

Does it really matter?

I guess it would be helpful for marketers to know who they're talking to — warts and all. We may have wart remover in our product line-up, after all. (But maybe Facebook isn't the place to be marketing wart remover.)

If Facebook or other social networking sites are about aspirations — looking like who you want to be, rather than who you really are — direct marketers LOVE tapping into those emotions.

In my opinion as a marketer, sometimes you take people at face value and sometimes you assume your target audience has flaws, fears, hidden agendas and unspoken desires. Just like the rest of us.
 

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Brian Gilbert

on November 7, 2007

category: integrated marketing

Vice President/Integrated Marketing

Please behave.

Behavioral targeting is the new watchword of Web and mobile marketing. The buzz has now hit the 100 decibel level and I'm starting to go a little deaf.

Direct marketers have been talking about behavioral targeting probably before most of us were born. What we meant was buying behavior. If someone had responded to a direct marketing offer — in just about any way, shape or form — they had the behavior we were looking for.

Because of my DM DNA, that's still my bias.

Behavioral targeting now means something quite different. If someone visits a marketer's web site selling cell phones but doesn't convert to a customer, that's their "behavior." With the targeting available now, a savvy direct marketer can now serve relevant banner ads to this individual as they are "encountered" on the Web — even if they're not on a cell phone or technology site.

That's a very non-direct-marketing way of looking at behavior — and something that wasn't possible before the advent of this technology. And here's why: general agencies were never really interested in changing behavior. Their focus has been to change awareness and attitudes.

I'm okay with that — but I still find the new definition of behavioral targeting a little disconcerting based on my DM roots.
 

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Stuart Gordon

on November 1, 2007

category: a look into agency life

Art Director

Happy Hackerween!

Every Halloween we invite some of our favorite little consumers into the office for some fun. They trick-or-treat from office to office. Then all the monsters, witches, fairy princesses and superheroes, big and small, head to a party in the conference room. Don’t be scared. Take a look at who showed up this year.


Every element has to have a peace code.


We suspect he’s had a bit too much monster mash.


I love to work in this Boogie Wonderland!


Our annual Halloween party is a fun way to get away from our scary deadlines and put our creativity to work building monsters.


Ambition is a dream with a V8 engine, baby.


In 20 years, when these people are in the market for a new credit card, don't offer 0% interest, show 'em the chocolate!


There’s no list purge that can stand up to me.


Our focus groups showed a strong preference for chocolate, licorice, gum, gummy candy, lollipops, jawbreakers, candy corn, jelly beans and pretty much anything with a LOT of sugar.


Marcia Marcia Marcia! Client services is almost as tough as growing up in a blended family.


We had a lot of little consumers in our office yesterday -- and I predict that the next generation of buyers will actually LIKE chain mail.


But, I really am the DM King. No, really.


Wait, Veronica, please tell me this is some kind of sick tasteless joke.


According to our demographic research, beer is the preferred beverage of monsters aged 21 to 35.


Someday all this direct mail will be yours!


Anyone know the zip code for Salem, Massachusetts?
 

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