VIEWS: 23 PAGES: 2 CATEGORY: Business & Economics POSTED ON: 8/25/2010
Many, including Congressman Dana Rohrabacher (R-CA), favor abolishing the postal monopoly and turning the failing USPS over to the employees. Still others want the government to get out of the way and do away with antiquated postal monopoly laws.
10 | DMNEWS | August 9, 2010 | www.dmnews.com OPINION Editorial Preparing for the big holiday game Carol Krol they are almost always looking at the numbers independent Editor-in-chief, of the customer dimension. DMNews It is much more important to understand how effective specific marketing initiatives are with individual customers. Michael Haydock The average retailer serves customers who fall into at least Retail analytics leader, IBM a dozen distinct categories. These include extremely loyal Global Business Services shoppers, as well as customers who only shop sales or only shop the retailer in a single narrow category. DMA steps in the right During August, marketing chiefs at major retailers are like athletes before the big game. They know what’s on With so many customer groups and so many media types, it becomes a very complex web to untangle. direction with new CEO the line. The decisions they make about how and where Modern analytics can tell a retailer how well a product to allocate the holiday season marketing budget will likely is selling with a certain category of customer in a specific spell the difference between victory and defeat for the entire market, and how badly with another group in another A fter an exhaustive, six-month-long search, the Direct year. And it’s a long time until next season. market. It can tease out crucial facts. For example, ana- Marketing Association named Lawrence Kimmel It has never been harder to figure out where to spend lytics can tell marketers that the online ads are effective president and CEO. marketing dollars. It used to be enough to have a big budget. against one competitor but not another. It can recommend Kimmel was chairman and CEO of Grey Direct from You’d divide your resources among TV, radio, newspapers, a robust defensive strategy aimed at maximizing revenue, 2000 to 2008, before it was renamed G2 Direct & Digital, direct mail and the catalog. such as running a print campaign targeting a specific set and prior to that logged time as EVP at Draft Worldwide No longer. Today, there are far more places to spend – and, of customers in a specific market. and president of Unimark, a direct marketing agency potentially, waste – your money: countless cable channels, This holiday season, retailers need to rely on more sophis- he founded. Web ads, YouTube. ticated analytics to achieve a distinct advantage in the mar- It is refreshing to see the industry trade association Fortunately, analytics technology can help. Most big ketplace. That will give them greater ability to pull in more tap an agency executive with years of direct marketing companies already perform basic analysis to understand revenue from current customers and attract new customers. experience. The strategy is a departure from its last two the effectiveness of their marketing programs. However, email@example.com appointments. John Greco, who resigned in February, How to save the US Postal Service had no direct marketing or agency experience, and his predecessor, Robert Wientzen, came out of the consumer packaged goods industry. There has been much change and dissent at the DMA in the past 12 months, which has not served the group loss of $7 billion in 2011. Now the postal service has proposed well. The organization scaled back, cutting staff signifi- a 23.3% average increase for standard parcels and non-flat cantly in multiple layoff rounds and shuttering some machinable pieces. conferences last year. This means a grim future for thousands of companies In September 2009, then COO Ramesh Lakshmi-Ratan Craig A. Huey and millions of jobs for marketers, retailers and business left the organization to lead a division at Pitney Bowes. President, owners. And the consumer loses, as well. Board member Gerry Pike launched a website last year, Creative Direct Marketing Group What’s more, to raise prices above the Consumer Price Index called ABetterDMA.org, questioning the group’s gov- would violate the safeguards imposed on pricing in the Postal ernance. He ultimately retained his spot on the DMA’s Direct mail will be dead for many companies and dying Accountability and Enhancement Act of 2006, according to board last October, but it was not without some measure for many more — if postal rates rise in 2011. Sen. Susan Collins (R-ME), who authored the law. of drama. Some have the delusion that small reforms at the US Postal Monopolies cut service in
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