How to identify and reach new customers at the lowest possible ...

How to identify and reach new customers at the lowest possible cost presented by Ian Heptonstall www.btob.co.uk The day . . .  We will examine this morning: How - to identify your target customers as groups Methods – of how you reach customers How - to identify your individual customers  We will examine in this afternoon: Content - what you say Form - how you say it Techniques - to increase response The marketing cycle Planning Implement Measure The building blocks Vision Plan Segment Communicate Measure Identifying your customers Identifying your customers  Business type (SIC codes)  Location (postcodes)  Size  Budget  Job function  Named person  Purchasing history \ responsibility  Mail responsiveness Identifying why your customers use you Ask your current customers? - 1  Why do you buy from us?  What did you do before you used us?  What made you change?  What one thing would you improve? Ask your current customers? - 2  What magazines do you read?  What exhibitions do you attend?  What trade associations do you belong to?  Could you recommend me to a company you might benefit from our product? Exercise 1 Developing a profile of your ideal customer WKS3 What is a customer worth to me What is a customer worth to me?  First order value?  Annual order value?  How many years?  Gross profit margin?  Lifetime worth? The magic formula  Lifetime worth =  Gross Profit x (annual value x number of years) How much should \ can I spend ?  How much did you spend on your last marketing campaign?  How many leads did it produce?  What is the cost per lead?  How many of these leads did you convert?  What is the cost per converted lead?  That is YOUR cost to acquire a customer. Exercise 2 Reaching your customers in a cost effective manner WKS4 Two ways to communicate Two way communication U Reaching your customers  The best methods . . .  Mail – acquire customers  Email – up selling current customers Direct mail  Selecting list is all important  Your own list vs buying a list  Relevance  Quality vs cost  Selection criteria: SIC codes, geography, mail responsive, named person, media, test Ensuring maximum response  Make it easy  Obvious  Free  Capture relevant information 13 proven ways to increase response  Increase response rate by - Single sheet stand alone leaflet, no covering letter, personalised, stamps, handwritten, pre-print response details, make response easy, offer an incentive.  Reduce your costs - mailsort, code response, examine print and enclosure costs The internet and e-mail  Advantages:       Cuts costs Short time scales Drives web site traffic Personalised High click through Real time What should I expect . . .  2% Hard bounce  quality of your data  3% Soft bounce  your reputation with ISP  33% Open rate  your first six lines  9% Click through rate  ensure personalised content  10% Conversion rate  pre-populate, incentivised HTML or text?  Use notepad not word to create 70/80 character per line Use hard returns Copy and paste into email  10% of B2B users use Lotus notes  What email programme used  Outlook 2007  Send both Building an email list  Get permission  The legal position is opt-in  Business vs partnership & individual  Actively collect:  All marketing material  Web site  Forward to a friend  Purchase? Good practise  Don’t conceal who you are  Have an un-subscribe  Use a 3rd party broadcaster  Treat people with respect  Have a clear privacy policy If buying email lists – 7 things to know  Has it been legally gathered?  Ask to see registration form used?  Can they provide references?  What segmentation variables can be used?  What is minimum purchase \ test?  How old is data?  Who broadcasts message? Summary - 10 things to know           Do the maths – what is cost per action? Develop a test plan Work on the subject line Use first 6 lines Consider text only to optimise Segment audience Personalise message Have many response channels – not just web Get contact details at a minimum Remember the forward to a colleague referral Lunch Other methods to reach customers? Inserts - reaching your customers  Typical response 0.5%  Prospect has your literature in their hand  Choosing the right media  Ask current customers what they read  Cost of advertising vs inserts plus print cost  Code responses and test . . . Reaching your customers 300 250 200 150 100 50 0 Cost '000 Mail Inserts Business drop Post Office Solus Newspaper Door to door - reaching your customers  Lower response than inserts, lower cost also.  Depends on your product - most suited to localised consumer services and retail  Choosing type of drop - Post Office, local newspapers, solus drops. Newspapers and trade magazines  Choosing your media: Benns and BRAD  Position: right hand page, top of page, page 3 5, 7 etc., TV listings, link to content of paper  Make response easy: Large telephone number, use a coupon, the squint test Reaching your customers  Telemarketing - The rules of telesales (probe, confirm, match), getting through the switchboard, timings of calls, be systematic, get referrals, ask for business and then shut up  Exhibitions - select the right event, layout and position of stand, 3 seconds , opening qualifier, use a physical stopper, headlines  P.R. - can cost very little, but can achieve big results, find hook to hang your story on. Reaching your customers  Telemarketing - The rules of telesales (probe, confirm, match), getting through the switchboard, timings of calls, be systematic, get referrals, ask for business and then shut up  Exhibitions - select the right event, layout and position of stand, 3 seconds , opening qualifier, use a physical stopper, headlines Two ways of selling - see and hear  We will examine this afternoon : Content - what you say Form - how you say it  We examined in the morning session: Method - how you reach customers Techniques - to increase response You have 3 seconds Headline! 80% Understanding Self Understanding Others A.I.D.A. A.I.D.A.  Attention  Interest  Desire  Action Exercise 4 Writing headlines that sell WKS6 Writing headlines – 6 rules  3 seconds to capture attention  Benefits  10 words  Clarity  Which means that . . .  test The decision making process         Interest arousal Requirement appreciated Knowledge of product extended Suitability appreciated Desire to buy Consider price Value appreciated I’ll buy it! Writing copy  Benefits  “You ability”  Sub headlines  Tell the story  Squint test  Arouse interest  Create desire Designing a direct mail leaflet 1. 2. 3. 4. 5. 6. 7. List & number benefits Top of the page is prime - don’t waste it Don’t insult or frighten the reader Get the reader to do something ( tick, quiz) Paint word pictures Be specific Use power words Exercise 5 The principles of developing a sales leaflet WKS6 Remember the 3W Formula  WHAT am I selling?  be clear express benefits  WHO am I selling to  know your customers  WHY should they buy?  benefits & motivators Summary  3 seconds to capture attention of reader  Dominant headline - Benefits, 10 words, clarity, which means that, you ability, test  Body Copy – Sub headlines tell the story  AIDA  Response - Easy, obvious, free, capture relevant info., perforated, business reply  TEST