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									        Week 4

Integrated Direct Marketing
       IDM Media Mix Includes
•   Public Relations
•   Internet and e-mail
•   Direct Response Print Advertising
•   Direct Mail
•   Inbound and Outbound Telecontact
•   Field Sales Channels
•   Consensual Databases
                 The Goal
• The goal of this process is simple
  – Significant increases in qualified response
  – Increased profit
  – Reduced waste through precision deployment
    of relevant and targeted communications.
                 IDM, A Definition
• Pre-Sale
   – Begins with integrated
     media and sales strategies.
         • To determine the needs,
           interests and preferences.
• Sale
         • Ever increasing focus on
           customers requirements
• Ongoing
         • Consultative needs
         • Problem identification and
         • Generation of repeat sales
           Traditional Results
• 2% YES
  98% NO
• This applies to e as well
A 2 % response may mean we are making money.
  But 98% of our market trashed our
  communication. This message is very clear. We
  must refocus our efforts to communicate greater
  relevance and deliver greater value. Information is
  the enabler; it is the tool we need to achieve
  double-digit response and leverage LTV of a
      Traditional Marketing
         A 2% Solution

YES                    98%
  The Goal of Traditional
    Direct Marketing

Quick Sale


• The evolution of American business has caused
  organizations to become series of Silos
• Management criteria and agendas vary from silo
  to silo.Only a few silos are focused on the
• Silos,
   – Inhibit integration
   – Preclude a company-wide focus on the customer.
• Inhibit Integration
• Preclude a company-wide focus on the
• Organization along product lines precludes
  a true customer focus
• Lack of processes to understand and address
  customer needs.
• Integrated Direct Marketing provides a
  strategic and tactical process for managing
  customer driven communications. It is a
  way to focus sales and marketing on
  building strong, lasting relationships with

        – Al Ries
      IDM is practical,there are
• The first barrier is perceptual
  – Just adding multiple media won‟t make your
    campaign integrated
  – IDM is a customer driven process that is based
    on research precision and analysis.
• Second barrier is organizational
  – It exists among disciplines such as marketing,
    sales and advertising, that value their turf and
    are not used to working cooperatively.
  – To integrate your direct marketing, you have to
    integrate your organization.
• Third barrier is implementation

  – Media and messages must be integrated and
    managed so your company speaks with one
    voice – carrying a message of value, as defined
    by the customer
  Make&Sell v.s. Listen&Serve
• The focus on the customer must be the
  driving force
  – We must compel ourselves to abandon the
    “make and sell” manufacturing mind set
    which has devastated the effectiveness of most
  – Instead we must rapidly evolve to the customer
    based commitment of “listen and serve.”
  Identify Marketing and Sales
Over 1000 hours of Voice of Customer(VOC)
 research confirms that
  – Customers and prospects are tired of receiving
    the traditional barrage of untargeted,
  – Unfocused and Unsolicited
     • Mailings,
     • Emails,
     • Phone calls, etc.
        Voice Of Customers
• Customers are increasingly opting-out
  – No Value!
• Name removal growing at 600% per year
  for some companies!
  – Customers finding no value in the
    communication No RELATIONSHIP
  – Opt-out rate can exceed sales rate
         Voice of Customers
• Almost 1000 hours of research on behalf of
  clients including
  – IBM, Agilent Technologies Inc., Applied
    Biosystems, AT&T, Citibank,
• Goal: To better understand the messaging
  and communication requirements of
       VOC Research Quotes
• “The fastest way to be forgotten is to buy”

  – Where is the “Thank you” message?
  – If you only knock the door to sell, you will
       VOC Research Quotes
• “You flood me with mail, instead of taking
  the time to understand what information
  you should be sending.”
• “What is the value of your
  communications? I get about one garbage
  can a day of unsolicited, irrelevant
                  How To‟s
• Allow customers to participate in a dialogue
  and populate your database with their
  –   Information needs
  –   Timing requirements
  –   Contact information
  –   Media Preferences
• “The consensual process throws out old
  assumptions, takes a market and breaks it
  down to the individual level….With this
  customer generated intelligence, there is no
  longer a need to blanket a market with mass
  – Brian Gillespie, former VP,
    ITT Sheraton Reservations Corporation
                 Investment Triangles
IDM, with the consensual Database, drives the allocation of resources per
propensity to buy

                                                          Marketing Investment
                          Top Producing

                              Good Customers

                                  Dormant Customers
                                  &Qualified Prospects


    Market Segmentation
          IDM Media Contribution



30                                                         Percentages



     Print Advertising   Internet   Mail   Telemarketing
          Internet and Email
• 76% of web sites fail to meet basic
  requirements for a good customer
  experience ( Forrester Research)
  – 17% of sites had comprehensive CS
  – 7% of sites had precise and comprehensive
    keyword searches
  – 87% didn‟t provide essential information at
    each user decision point
            Internet & Email
• Only 2% of those who visit a site actually
  make a purchase (Net effect)
  – In spite of marketplace perceptions of the web
    (e-channel) as a dominant customer contact
    point,traditional selling channels such as face to
    face selling, business partners and telechannels
    continue to account for more than 95% of
    revenues (meta group / IMT)
           Internet & Email
• Regarding consumers who categorize
  themselves as online users: of the holiday
  – 26 % of internet users budget was spent online.
  – 60% was spent in traditional bricks and mortar
          Internet & Email
• Websites and e-communications are more
  effective in customer retention and for
           Internet & Email
• Response will vary by message sent
  – Per e-Marketer retention messages are read
    almost twice as frequently as acquisition
• “Keep it easy, interactive and visual”
• “If we request in-depth information, it is
  OK to ask for information in return”
• “Please answer our email promptly”
  – Expected response within 24 hours
           The e-mailbox is
          “private property”
• Perception of unsolicited emails may cause
  severe reactions.
  – Example ACE computer camp
  – Computer programming and gaming camp for
  – Sent out a notice about upcoming summer
    camp to a rented list
  – A handful of complaints caused them to be
    branded “Spammer”
                 How To‟s
• Define your target audience
• Why and when do customers want to visit
  your web site
• Why and when do customers want email
  – Email for specific information interchange
  – Web sites for research and easy purchase
• Provide options that include knowledgeable
  empowered real time human interaction
            Internet & Email
• Map your customers‟ needs
  – Which needs can be fulfilled by which channel
     • Web sites for research
     • Direct mail for in depth information
     • Inbound calls for complex orders and customer
• Don‟t force customers for the low cost
             Internet & Email
• Incorporate electronic data capture
  – Ask for profiling information as appropriate
     • Don‟t request detailed personal information on the
       “first date”
     • Learn something new with each exchange value
     • Track web behavior to identify
        – Important information
        – Deletions / Areas to develop
               Your Investment
• Carefully consider your investment in e-media
   – Expect limited payback from your investment in
     internet content (Jupiter research)
• Carefully consider the offers you extend via e-
   – Discounting will
      • Commoditize your product
      • Increase customers‟ expectations that e-media = lower prices
             Internet & Email
• E-chat
  – Requires a specialized skill set
• “Call me” button
  – Customers expect prompt response
  – Careful- some consumers only have one
    telephone line and may be online
• 800# promote the value of the Inbound
Direct Mail
            Direct Mail
•Per VOC Research, most customers
prefer to get in-depth information via
Direct Mail
  –A medium to communicate value
  –Not junk mail

•However that is not the way marketers
appear to be deploying this medium
              VOC quotes
• “Value? One garbage can per day – 2 feet
  by 16 inches”
• “You are using me as an executive mail
               VOC quotes
• 75% of those interviewed preferred to
  receive in depth information via direct mail
• “Email maybe the base of your
  communications with me, but I am getting
  too much junk. If it is really important send
  it to me by mail.”
• “Mail should be specific to my role what I
  do all day long.”
                 VOC quotes
• “If I request information, I‟d rather you send it to
  me by mail versus a decades-long download. Mail
  is easier to access, easier to read.”
• “A personal invitation goes right to the top of my
• “As I sort mail, I look at the corner card ( Who is
  this from) and the class of mail. If I recognize the
  company/if we have a relationship, and if it‟s sent
  first class I‟ll open it every time.”
   Effectiveness of Direct Mail
• To increase the effectiveness of direct mail
  – Spell your customers name correctly
     • Most frequent error
     • Undermines dialogue
   Effectiveness of Direct Mail
• Personalize the message
  – Per immediate needs of the customer;
     • “The attached article details independent testing that
       shows the benefit of on site training.Per our
       conversation regarding leadership training, you will
       find quantitative results on page 2 paragraph 2”
  – Per the relationship with the customer
     • “We appreciate the opportunity to provide our
       customers with regular updates regarding important
            Important Questions
• Copy and design must clearly answer these four
   –   What is the topic?
   –   What do you want me to do?
   –   When do you want me to do it?
   –   What is in it for me?
• A strong and visible call to action is essential
 1 800 number
               Direct Mail
• Introduce the value of the website
  – Why should you go to the web site
  – Information
  – Track a shipment
• Emphasize the benefit of Inbound
   – Speak to trained knowledgeable, empowered
     product advisors who can answer your
     questions and expedite order.
Create Springboard for Outbound
• Introduce the value of the outbound touch
• “Your tax advisor John Smith will be
  calling you later this week to discuss this
  new legislation, and how it will specifically
  apply to your portfolio”
Timing= One week after Print Ad
• Mail should be deployed approximately
  one week after direct response print
 Tips: How to increase Direct
 Mail response by 15% or more
• Personalize the communication
• Mail First Class
  – Additional cost equals additional results
  – Testing has shown that the additional cost of
    first class is more than offset by the increase in
    qualified response
 Tip: Don‟t release all the mail at
• Stagger the mail to:
  – Load level inbound call volumes
  – Ensure timely outbound follow up
• Release mail in “Waves”
  – Sized per telemarketing capacity

 Wave I              Wave II           Wave III
         Points to Remember
• Integrate mail with other media
  – Timing
  – Message
  – Call to action
• Personalize the communication
  – To the individual (spell their name correctly)
  – To the relationship
  – To the individuals needs and requirements
Inbound and Outbound
         Inbound Call Center
• Customers place inbound calls for a specific
  – To inquire
  – To make a purchase
  – To resolve an issue
            Inbound Call Center
• However, what they frequently encounter
  are the human robots
  – Reactive/ Transactional Reps who do not:
     •   Communicate value
     •   Satisfy customers
     •   Increase revenue
     •   Contribute to the brand
  – What do your customers experience when they
    call your 800# ?
• Marketing expenditures on mail and other
  media cause the phone to ring
  – What is the cost of an inbound call
     • $50 - $250
     • What are your costs?
Customers want to speak to a live
•   Someone who represents the company well
•   Immediate gratification
•   Extremely low customer expectations
•   Customers have become accustomed to
    poor service.
                   Inbound Integration

                   • Inbound, carefully integrated into the
                     media mix, can generate a 50%-100%
50-100% Increase
                     increase in qualified response

                   • Visible integration of 800 # into all
                      –   Publicity
                      –   Advertising
                      –   Mail
Mail Only             –   Internet
2% Response
      Outbound Telemarketing
• Issue:
  – Outbound telemarketing
     • Most powerful medium for response, leads and sales
     • Most powerful medium for dissatisfaction
             Bad Reputation
• Outbound, as an industry, has been
  successful in giving itself a black eye
  – The calls we receive at dinner
          Voice of Customer
• Extremely low customer expectation
• Per VOC research
  – Irrelevant. Unstructured. Offensive
  – You are not listening. Cold calling is not
  – “Telemarketing is intrusive. If I am interested I
    will call you”
  – How much of a relationship do you feel with
    the folks who call during the dinner
     Outbound Telemarketing
• Integrate and synchronize outbound with
  other media and messages
• Deploy integrated telesales
  – Market justified
  – Interactive dialogue not broadcast!
  – High quality = higher revenue
     Outbound Telemarketing
• Control the call.
• Quickly answer the spoken question, „What
  is in it for me?”.
• Probe for the clear statements of need.
• Present the solution with features and
                  The Script
• Meet objections with benefit and value
  – The four types of objections
     • No need
     • No money
                                          The Script has to
     • No confidence ( in your company,   address
      product or service)
     • No hurry to purchase
• Effectively respond to objections
  – Develop and continuously refine scripting
     • Every 3-4 weeks the scripting has to change. If not
       you are in trouble.
• Up-sell cross-sell whenever possible
  – As appropriate develop an Affinity Matrix to
    help Reps match solutions to needs.
     The Principles of Response Compression

           Traditional Mail&Phone    Response Compression

                                       24-72 hours

           Mail                     Mail

          Outbound          Total Increase 600%

                      •Mail is more productive
                      •Telemarketing is more profitable
                      •Multiple messages via different channels
           800 #      •Will increase sales

 2%       Mail Only
Direct Response
Print Advertising
             Direct Response Print
• Two major uses for direct
  response PA
    – To provide a specific umbrella
      of awareness in support of
      email, internet, direct mail and
    – To demonstrate commitment to
      a specific marketplace
        • “If wee see your ad in the
          publications we mentioned,
          we know you are dedicated
          and will stay committed”
                         How To‟s

• Deploy direct response Print Ads
   – Must generate some degree of response
   – Awareness is most clearly measured by response
• Create awareness in support of email, internet, direct mail
  and telemarketing
   – Introduce clear benefits and visuals
   – Include a strong call to action
   – Provide multiple response options with benefits for choosing
       • Internet: Research / Ordering
       • Inbound : Talk with an experienced product Advisor
       • Suggestion: Drive response to interactive inbound channel to enable
         up-selling / cross selling / database building
 Use VOC research to determine
• What publications do you
  read regularly for this
• In which of these should
  we advertise?
• What information should
  the ad contain?
• What visuals would you
  want to see?
• What offer do you find
• Trade shows attendance is very expensive
• Given the noise trade shows are inefficient
  in generating high quality leads.
              7 Step IDM Registration
                 Generation Process

1.   5 Weeks prior……………………                 Print Advertising
2.   4 Weeks prior……………………                 Initial Direct Mail
3.   3.5 Weeks (24-72 hrs. after mail)..   Outbound Telemarketing
4.   2.5 Weeks………………………..                  Confirmation Letter / Email
5.   1 Week prior……………………..                Briefing Package
6.   3 Days & 24 Hours Prior………...         Confirmation Call #1 #2
7.   1 Week After…………………….                 Follow up communication
Field Sales
       Integrating Field Sales
• Issue:
  – Marketing+Sales= dysfunctional relationship
     • Different measurements for success
           – Marketing success is measured by gross number of
             inquiries / leads.
           – Sales success measured by revenue.
            Sales Integration
• Process review with field Sales
• Create inside sales and telemarketing
• Send fewer, higher quality leads to the field.
• Set up feedback loop.
             Public Relations
• PR / Publicity
  – Can generate the
     • Highest quality leads
     • Highest average order
  – Is generally left out of the direct marketing
    media Marketing Mix
• There is no stronger form of awareness
  – Implied endorsement of the publication
  – Verisimilitude
• However there is a long lead time
  – Ideas must be submitted 3 months prior to
  – No guarantee when, or if your story will run
• Final story may not match your idea
  – Editorial process may shift focus from your
                    How To‟s
• Target publications per the profile of your
  customer base
   – Customer vertical versus general publications
   – As possible, use VOC research
• Generate newsworthy ideas
   – What are the needs and requirements of your target
   – How do the benefits of your product / Service address
     those needs
   – Do not sound over promotional / concentrate on
     customer benefits.
   – Your idea should show how customers can get access to
     these benefits through your web site / 800#.
• Persistence
  – Personal relationships make the difference
  – Identify the appropriate writers / editors
  – Follow up by phone
     • Don‟t mail ore releases than you can follow up per
       response compression
     • Script your phone calls / messages to ensure value
  – Use prints as a component of fulfillment
                       IDM Contact Management Calendar

                            1   2 3      4   5   6   7   8   9   10 11 12
•   Publicity

•   Website

•   PA

•   Email Newsletter

•   Catalog

•   Direct Mail

•   Telemarketing

                            1   2    3   4 5     6   7   8   9 10 11 12

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