Carolyn Hansen

on January 29, 2009

category: direct marketing

Vice President/Marketing

Identifying new audiences for your product.

Targeting, segmenting, media planning . . . all those things are tailor-made for spreadsheet junkies, right?

We’re so darned rational in the marketing world. At least when we’re explaining what we do to clients. We do all this research, you see. Qualitative, quantitative, all of it. We mine your customer database and overlay somebody else’s database and see what shakes out.

We know your audience’s age, income, height, weight and eye color. They index high for left-handedness, have 1.14 children and prefer cats to dogs.

The client has to be pleased when we’re so familiar with their target . . . but where do we find more people like this?

It’s tempting, in a new era that punishes wastefulness, to paint ourselves into a corner with our targeting. Let me suggest that carefully testing into new ideas may be appropriate right now. Let’s have a little less "rationality" and a little more creativity -- because we should be looking for customers wherever we can find them.

Why not invite a group of smart marketers who may be less familiar with your product and your target into a room and have a little brainstorm.

• Who might be interested that we’re missing right now?
• What halo around the target might be ripe for picking, partly because they haven’t seen our marketing over and over?
• Look farther afield, as well. What else might your product be used for that has resonance with a completely out-of-target audience?

Human beings are prone to stereotyping and, for the most part, it works well as a survival mechanism. It allows us to think about the more likely threats before the unlikely ones. But there’s a time when our stereotypes hold us back from thinking bigger.

When everyone else is thinking small, try thinking big.

 

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Carolyn Hansen

on January 23, 2009

category: direct marketing

Vice President/Marketing

What's worth measuring.

Yet another survey of marketers has shown that they are unable or unwilling to measure marketing return on investment. This time the information comes from The Conference Board in a report called Managing and Measuring Return on Marketing Investment.

I don’t doubt that technical and other issues seriously inhibit measurement. But it doesn’t mean you can’t make a start. Here’s the kicker from this report:

Leadership commitment (63 percent) is the most important driver of marketing ROI. An additional 37 percent said that executive sponsorship in particular is an important driver, supporting findings that identify senior leadership as the most important component of the business environment for the advancement of an ROI-driven marketing effort.

If I’m understanding what this says and my math skills are up to par -- 63 plus 37 . . . carry the 1 -- 100% of the marketers surveyed who aren’t able to measure ROI think it’s because their boss won’t let them. I must be misreading this.

The real issue looks like something else. Another quote:

Although the inputs and expenses associated with marketing can easily be measured on a monthly or quarterly basis, the results of a successful marketing effort — enhanced brand recognition and reputation, customer loyalty, improved market penetration, expanded networks and cross-selling opportunities — may not be realized in the form of increased revenue within a specific timeframe and may be difficult to forecast,

Some of these things are either nearly impossible to measure or else really not important.

Brand recognition is not necessarily worth measuring. You should have an idea if your brand isn’t well known. If it isn’t well known generally, you may also have a pretty good idea if it’s known within your target market. When you talk to potential customers, have they heard of your company or product? If not, brand recognition may be an issue for you. Measuring it isn’t as important as fixing it -- because (as noted) it can’t really be attributed to a single effort anyway.

Reputation is rarely impacted by advertising. Perhaps this metric can be foisted on the PR people.

Customer loyalty can be measured, and relatively easily, if you have a customer database. If you don’t have one, you need to figure out whether it makes sense strategically to build one. If it doesn’t make sense, maybe all you need to measure is revenue growth.

Market penetration is something like brand recognition. It may not be an important metric. And wouldn’t revenue growth (again) be an easy substitute, until the time comes when you’re able to determine market penetration? If it’s that big a deal, can you hire a research firm? Outsourcing is a possibility for measuring many of these things.

Expanded networks. Umm . . . what does that mean in this context?

Cross-selling opportunities? If you have customers and you know who they are, e.g., have a database so you know what they bought or have a retail store so they’re standing in front of you when they’re buying, you have cross-selling opportunities. Since these are both one-to-one examples, you should probably be able to get some measurement in place. If your boss lets you.

So much depends on what you’re selling and how you sell it that my generalizations sound as fatuous as the results of this 73-person survey. So, seriously, before you rant and rave about how hard it is to measure results, remember that it’s okay to decide that some results aren’t worth measuring.
 

 

 

Comments:

2/3/2009 at 12:35 a.m.
Thanks!
Thanks for the suggestions, Dave. We're having a meeting about how we can improve this blog on Monday . . . and I'm forwarding your comments to the rest of the team. (I make no promises about when you'll see changes, however!)
>>Carolyn Hansen,  2/2/2009 at 7:20 p.m.
Measurements
I like your blog, your team is obviously focused on creating great content. I have a couple of recommendations. 1.) Use Blog software that will allow a commenter a link back to his website. That will create more comments, which inturn creates better ranking and thereby more sales. 2.) Supply a trackback link so that if someone wants to talk up your great post on measurement they can give you credit. That will create more links, which creates better ranking, and you guessed it more sales. Blogging is marketing and you guys have infrastructure and talent depth to rock at it. Positively, Dave Pavlu Measurement Freak http://www.AdsUpNow.com
>>Dave Pavlu, Snohomish  WA

Brian Gilbert

on January 21, 2009

category: integrated marketing

Vice President/Integrated Marketing

Campaign-specific SEM.

I was talking to a friend yesterday about her small business and found out she knew absolutely nothing about search-engine marketing. She’d never heard of Google AdWords or Microsoft adCenter.

As I thought about it, I realized that SEM can be overlooked by some of the bigger players, too.

So here’s a reminder. Put it on your to-do list. Whenever you run a direct marketing campaign -- particularly on TV or radio -- run a related SEM campaign.

For example, if you’re on the air saying, "Ask for your free Such-and-Such booklet," buy "Such-and-Such booklet" as a keyword on the search engines, as well as anything that sounds remotely like "Such-and Such." (Would that be "Such-and-So"? Note to self: pick more interesting names.)

Your SEM campaign won’t cost much, because you’ll probably get only a few clicks, but just about every click-through will be highly qualified.

And don’t forget to create a campaign-related landing page to capture your leads’ contact information! It doesn’t have to be complicated, but you’ll lose those precious qualified leads if you send them to your home page.

 

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Jürgen Stephan

on January 16, 2009

category: lead generation

Executive Director, New Business Development

Have you achieved your 2009 sales goals?

It’s a little early to start talking about year-end goals, isn’t it?

For marketers with long sales cycles, however, the year could be considered half over. My team has very likely teed up all the sales we can expect to sign by the end of first quarter. It’s possible a few deals could come in over the transom and surprise us, but most of the signatures we’ll read on new contracts this quarter we already know.

Our marketing plans for the year are, if not set in stone, well thought-through -- and some are already being executed. That’s so that we’ll have leads in the pipeline in Q2 and Q3. And those leads are the only way we’ll meet our sales goals by the end of the year.

Hurry. The end of the year is sneaking up on you.

 

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Jon Bell

on January 13, 2009

category: creative

Senior Copywriter

Have a little respect.

I sometimes wonder if marketers have parents or grandparents. So many of us have no trouble talking down to seniors. Or making fun of them behind their backs.

Here’s a snarky little story in the Los Angeles Times, reporting on the Consumer Electronics Show:

Remember when Grandma and Grandpa were confounded by the VCR? Today’s senior citizens are surfing the Web, gabbing on cellphones, Skyping with grandkids and firing up the Wii game console.

When it comes to technology, older Americans have done a cultural reboot.

"They’re doing things that 80-year-olds weren’t doing 15 years ago," said Howard Byck, senior vice president for lifestyle products for AARP.

Excuse me? Did you have a Wii console 15 years ago, Mr. Smartypants? Were you Skyping anyone?

Fifteen years ago was when I bought my first cell phone. That’s also about when I opened my first home email account through AOL. I remember getting something called "Internet in a Box" in order to do it. There was barely a World Wide Web, and certainly no Skype.

What’s more, I recall a few 30-somethings having trouble setting the clock on their VCRs back in the day.

Of course, seniors are doing more technologically sophisticated things than they used to. So are the rest of us. There are also more seniors than there used to be. So the growth in sales to seniors may be more about a demographic bulge than a "cultural reboot."

Seniors deserve more thoughtful consideration than an "isn’t that cute" pat on the head. Marketers need to remember that seniors are a lot like the rest of us. When I’m writing for seniors, I keep real members of the target audience in mind – people like my scary Aunt Ida or Jack Nicholson or Toni Morrison.  Would you pat Hillary Clinton on the head?  Or talk down to Arnold Palmer?  Puh-leaze!

In fact, I respect seniors so much, I aspire to become one!

 

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Jon Bell

on January 8, 2009

category: creative

Senior Copywriter

Beautiful but dumb.

The Madison Avenue Journal has been doing an in-depth, multi-article interview of Keith Reinhard who deeply admired Bill Bernbach. The Journal has nicely presented Bernbach’s 20 insights on advertising. Number 9 struck me as just terrific:

I wouldn’t hesitate for a second to choose the plain looking ad that is alive and vital and meaningful, over the ad that is beautiful but dumb.

How many of us fall for the beautiful but dumb one in a creative presentation?

I have a bias. I’m a writer. So in my heart, "meaningful" has more to do with copy than art. But in reality, I know that vitality and even meaning can also be about touching the emotions through design or music. The beautiful ad can also be the very best.

Judging advertising in a conference room during a creative pitch is trickier than it sounds. You think, "I’d never pick the beautiful, dumb one." But it happens all the time. Fortunately, direct marketers have developed more humility than that. We’ve all fallen for the dumb one. Then we test it and discover the target audience completely disagrees.

I’m glad my career never depended on a "golden gut" or an ability to unfailingly pick winners. Instead, I’ve tried to learn what people respond to and put that vital and meaningful touch into every campaign.

 

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Brian Gilbert

on January 7, 2009

category: integrated marketing

Vice President/Integrated Marketing

Doing more with your database.

If the new theme of 2009 is "doing more with less," as Carolyn said yesterday, a great place to look is your own database.

Customer acquisition is even more expensive in a downturn, so taking good care of the customers you have should be a very high priority. VERY high. You know your competitors will be luring them with the best deals possible. But you have an advantage. You know them. Idea # 1: Determine their preferences and cater to them.

You can also easily focus on the most profitable customers and -- here’s Idea #2 -- fire the customers who cost more than they're worth.

Of course the really fun part -- if you're a data geek like me -- is figuring out what to do with the mass of customers in the middle.

Idea #3: What has the customer bought from you and what should they buy next? Send them an email offer.

Idea #4: Are there trigger events that suggest a customer communication is in order? For example, if a re-order is smaller than usual, should you make another offer to get the amount up again? If it’s larger than usual, should you give them a special thank-you offer?

Idea #5: If it's hard to know what your customers want from you, why not ask? A customer survey can give you a ton of useful information -- about particular people and about your customers in general. Just make sure you keep track of the information in your database -- and use it.

 

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Carolyn Hansen

on January 6, 2009

category: direct marketing

Vice President/Marketing

Marketing smarter, not harder

We’re all being a lot more careful with our budgets in 2009 -- consumers and businesses alike.

"Do more with less" is back in style with CFOs everywhere. Argh.

I have a proposal for you: Use some of your marketing budget for split testing -- even if that budget is smaller this year. In fact, do it especially if your budget has shrunk.

Multivariate testing is an inexpensive and fast way to learn what your target audience responds to. Try all your brilliant ideas -- creative, media outlets, offers, etc. -- all at the same time and see what happens. Then you can stretch the rest of your budget much further by spending only on what works and dropping the losing ideas.

You don’t need millions of dollars to do it . . . and the learning is priceless.

 

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