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Direct Marketing For Results

September 29th, 2006

direct marketing is, perhaps, one of the most important aspects of running any business where goods or services are being sold.  If you are offering products or services, you want to see results.  If done correctly, direct marketing will help you achieve that goal.

When you implement direct marketing, you are directly communicating with carefully targeted individuals.  These are the people to whom you want to buy your products or services, and from whom you will receive the most business.  If marketed correctly, your target consumers will realize that your products and services can best benefit them, and you will then begin building a loyal customer base.

The objective of direct marketing through communications with individual consumers is to obtain an immediate response and cultivate lasting customer relationships.  It is usually carried out by telephone sales, usually in the form of telemarketing and telesales, and provides you direct contact with your potential customers.  It can, however, also be carried out by direct mail, which includes: brochures, catalogs, and flyers, and by through direct-response broadcast advertising through television and radio, and infomercials and home shopping networks.  First, customers often enjoy the convenience of direct marketing, as they do not have to battle traffic find a parking space in a over-crowded parking lot, or browse through crowded stores to find products that suit them.  Instead, they can simply order their desired products through a catalog by using the telephone, or by shopping online without ever leaving the comforts of their own home.  The requested products are then shipped directly to their homes, which is another sought-after convenience.  Purchasing products through direct marketing channels is also private and easy, and does not involve a face-to-face interaction with a sales person.  While some people prefer this face-to-face encounter, others find it easier and more convenient to shop without ever leaving the home.

It also provides convenience for the busy working men and women of today.  Here, items can be bought on a lunch break online or from a catalog with time left over for actually eating lunch.  This also allows businesses to offer a wider selection of products while making comparison shopping easier with greater access to alternative or competing products. 

Finally, direct marketing can produce immediate results as goods can be purchased quickly and easily in the exact configuration desired.  It saves time, allows companies to offer a broader selection, and be a lot of fun for both the buyer and seller.
direct marketing provides many benefits to both buyers and sellers

Direct marketing campaigns

August 18th, 2006

Douglas Smith
8 Ways to Make Your direct marketing Copy Work Harder
(MarketingProfs.com tutorial, February 2002)

In direct marketing campaigns - the kind designed to provoke a response of some kind - creative often takes a back seat to other factors. In the 60-20-20 rule (or any of its countless variations), Audience is essential … Offer is Everything … Creative is merely Compulsory.
Fine. Nevertheless, Copy is still King. Here’s why: without good copy, your perfectly-targeted audience might never understand that wonderful offer of yours - or, even if they’re suitably impressed, may not summon up the energy to do anything about it.

So whether you’re penning an e-blast yourself, or reviewing your agency’s draft of an upcoming self-mailer, it pays to know the difference between highly effective copy - the kind that commands high response rates - and the kind that just speeds your campaign’s journey to the recycle bin.

Nailed your lists? Got an irresistible offer? Great. Here are 8 ways to make sure the copy does its job, too.

1. Make your copy approachable. Even great copy won’t work if people don’t read it - so present everything in digestible, “bite-size” chunks:
Split up any paragraph that exceed 3 lines in length…
Present key selling concepts as series of bullets…
Use ellipses (”…”) - both within sentences and at the end of serial bullets - to keep the reader’s eye moving…
Sprinkle the page (or screen) with subheads (preferably bold or underlined, unless you’re working in text-only e-mail).
Add more bold and underline treatments wherever important ideas lurk (remember, some readers skim ONLY the big-and-bold; others may decide to read more, but only if these highly-visible ideas draw them in).
Ultimately, your page or screen should be at least 45% white space (and more is almost always better). Does this mean you’ll spend more on paper? Maybe, but the increased response rates will more than cover any additional costs. Worried about forcing online readers to scroll? As long as a call to action and hyperlink are visible at all times, physical copy length won’t hurt you. It’s the readability that counts.

2. Present the call to action early - and often. Most audience members won’t read your entire piece; and many skim, or skip around. It’s critical to tell them what to do, then, as soon as possible (in a letter or e-mail package, no later than the 3rd paragraph). Briefly describe the offer, then tell readers to respond (and how to do so).

After that first call to action, give readers a few more reasons to respond - then tell them again (and tell them how again). If your copy is long (multiple pages or screens), always keep a call to action in sight. And because many readers look first at a letter’s opening and close, always use the P.S. to tell readers precisely what to do.

3. Benefits first. Let’s assume you’re already sold on the value of communicating benefits over features. In direct response copy, there’s an important trick that has to do with the way people skim these pieces: in nearly every phrase or sentence, express a benefit (of responding, or of using your product or service) - and write that benefit first.
Wrong: “Graphical, point-and-click user interface saves hours of your valuable time.” (feature mentioned first)
Right: “Save valuable hours on a wide range of tasks, thanks to an easy-to-use, point-and-click interface.” (benefit mentioned first)
4. Sell the offer, not the product. Whatever your campaign offers the target audience - a free information packet, an instructive Web seminar, a gift for visiting a trade show booth - concentrate on selling the benefits of responding and receiving the offer. (Why? Because your goal of your campaign is getting the person to respond, period.)
Selling the product may or may not be achievable (or even advisable) in the space your piece allows - especially if it’s a big-ticket item. If you can just get someone interested enough to respond to the offer, you can then leave the real selling to your sales force. Plus you can always include your product brochure in that free info pack.
Wrong: “Send for your free packet and discover the powerful benefits of the Acme Integrated Infrastructure Miracle Suite.” (selling the product)
Right: “Send for your free packet and learn how companies like yours are already trimming costs, boosting morale, and earning higher test scores for their kids.” (selling the offer)
5. Voice: be the helpful colleague your reader has been looking for. Most people like to take positive action, but many need encouragement. Everything about your copy should provide that helping hand. Here are two ways to find the right “voice:”

Use second person (”you”) language. Don’t talk about yourself, your company, or its products - talk to the reader, about the reader.
Wrong: “Our matchless products and services can help you increase productivity…” (talking about you and your products)

Right: “You’ll eliminate hours of tedious labor every week, simply by…” (talking about the reader, and benefits to the reader)
Keep it action-oriented. Repeatedly describe the reader taking action (”Call today and find out how…”). Communicate concepts and benefits in active terms:
Wrong: “These tools can really improve your bottom line…” (this is about your tools)

Right: “You can rake in more revenues and slash costs…” (this is about the reader)
Stick to active language (it’s easier to read, and it works to stimulate the kind of action you like: responses to your offer).

Wrong: “Our product is used in more than 300 companies in 20 countries.” (passive voice invites drowsiness)
Right: “Call center managers are already using the Acme Solution to crank up productivity in more than 300 companies worldwide.” (active voice plus action-oriented words)
6. Use the Shampoo Formula. Okay, it’s a little more complex than lather, rinse, repeat, but it’s a proven winner - and it works in direct mail letters, brochures, broadcast e-mail messages, even on splash pages for e-newsletter ad and banner campaigns. Structure your copy as follows, and you’ll reel in the widest possible range of respondents.

Acknowledge pain or opportunity
Offer benefit (ease pain, grab opportunity)
Call to action
Offer description & benefit(s)
Call to action (Note: repeat steps 4 & 5 until you’re out of compelling offer benefits - or space)
Product mention, brief benefits
Sweetener (a reason to respond NOW, such as a giveaway or limited-time discount)
Summarize benefits of responding (keep it punchy!)
Call to action

7. Every word counts - but no need to count words. In direct marketing we can’t afford to waste words - but we shouldn’t unnecessarily withhold them, either. Stop writing when you’ve exhausted all the most compelling reasons to respond without being repetitive - and no earlier.

Hold back a few key benefits just to satisfy someone’s idea of “ideal copy length”, and you risk losing the reader who was on the fence, and needed a little more convincing.

8. Take the skimmer test. Finally, go back to the top and read only the headlines, subheads, and underlined or bold phrases. These words alone should tell your story - if they don’t, adjust as necessary.

 

The Evolution of Data Processing.

July 11th, 2006

Data Processing has changed greatly over time. While one can track the beginnings of the modern analytical computer to Charles Babbage (1791-1871), we really saw the beginning of modern day information systems during World War II when they were used as code busters. After the war, few anticipated how much computers would affect our lives. Early on even IBM thought that there would only be a handful of companies that would need a computer.

 

In those days, computers were massive systems based on vacuum tubes and core memory. With the advent of the integrated circuit, computer architectures took a giant leap forward. The mainframe systems of the late 1980’s evolved into Client/Server applications of the early 1990’s. In parallel, the Internet grew from a few engineer and research systems to a World Wide network. It wasn’t until an Al Gore authored bill allowing commerce to be carried out over the Internet did things really start to change. Every business, every organization, had to carve out a space on “The Net.”

 

The ubiquitous nature of The Internet made it the perfect way for business to have a global reach while maintaining a local presence. Soon, application vendors were making Internet based applications. Today, solution providers are exploiting service oriented architectures and BPEL to provide more agile environments in which to do business.

 

Today, combining Internet access with massive, inexpensive compute power, Data Processing has been transformed from an ancillary function of accounting departments to mechanisms by which organizations can transform and enhance their internal processing while integrating their interactions with customers and suppliers.

 

The key to modern day Data Processing is not simply the automation of some manual process. Today, business realizes that Data Processing, information systems, change the very processes that are used to run the business. They not only do same things more efficiently, the do thins differently.

 

In the past an order was printed and sent to a supplier. The order was received and, if the item was in stock, it was shipped. Items not in stock were placed on back order. Today with Supply chain integration, the entire supply chain is integrated into one network. Warehouse management software notifies suppliers when stock levels drop and order are placed. The suppliers themselves use data mining and CRM (Customer Relationship Management) software to predict ordering patterns and anticipate customer needs.

 

Even how businesses interact with their customers has changed. In the past, businesses used mass marketing to appeal to the greatness number of possible customers. Today, we have mass customization where businesses on a group basis provide customized goods and services.

Effective Direct Mail Campaigns

July 11th, 2006

It is not that difficult to have an effective direct mail campaign that draws in customers both new and old. It only takes a little bit of work to create an effective system for your company.

 

The first and most important concept to make sure to take care of when having a direct mail listing is to have a clear objective of what you want to accomplish with your mailing. Do you want more customers or do you want to offer an incentive to get the customers that you have already to come back to purchase more? Having an idea of what you want to accomplish with your mailings will help conserve money and make your direct mailing campaign effective.

 

Make your direct mailing campaign personal. People like to receive letters in the mail from friends and relatives and not junk mail. Making your direct mailing campaign more like a letter to a friend than a junk mail add will keep your advertisement from being thrown away.

 

Give incentives everyone loves to get something whether it be a discount or a free item. An incentive can be aimed at returning customers to keep them coming back for more or to new customers not yet familiar with your company. Incentives can work for either customer category.

 

Why should they use your company? Put in the direct mail campaign the benefits and reasons why they should come back to use your again or use you for the first time. Make sure they know why you are better than any of your competitors out there. However, keep this relatively humble. No one likes an inflated ego.

 

Never forget to leave a way for them to contact your business. Should they come into a store, call your over the phone or visit your website. It would be a travesty to have a customer that wants to use your product and is sold on your advertisement but has absolutely no way to reach you to take advantage of that new found knowledge.

 

Taking these steps will help make your direct mail campaign effective in bringing in customers to your business. Not only to save you money but to also increase your profits. With these things in mind you too can run an effectively keep your business in the minds of the average consumer, bringing your business to the next level.

Direct marketing support services, lettershop services

July 6th, 2006

Most marketing firms do a lot of direct marketing. One might even suggest it’s traditionally the bread and butter of a marketing firm’s income. However, in order to properly manage a direct marketing campaign your firm will need to have adequate direct marketing support services, including lettershop services. These support elements will do the grunt work in your direct marketing campaign.
direct marketing support services many involve such things as printing, mailings database management, and campaign management. While lettershop services handle issues tied to the distribution of your direct marketing campaign. This includes many mundane tasks such as labeling, presorting, folding, tracking and so on. However, as mundane as these tasks may be they are critical to the completion of a successful direct marketing campaign.
In most direct marketing campaigns, direct marketing support services, and lettershop services are handled by an outside vendor. As with the selection of any outside vendor, we suggest you do your research. But there’s a problem with this. Obviously, competitive marketing firms may be loathe to give you any information about the companies they use for direct marketing support services, and lettershop services. But we have found a way around that one, and it may sound silly but it actually works.
Call your congressman.
Stop laughing. We are serious.
Why, you may ask, we are not trying to get a bill passed? We are just looking for some good vendors for direct marketing support services and lettershop services, how could our congressmen help with that? Well, it is quite simple, political candidate do a lot of direct mailings, and they usually use local companies. Also, you are a small business in your congressman’s district; he will have a reason to help you.
Okay, so now you have found a good company to handing your direct marketing support services and lettershop services. Are there any other pitfalls? Of course there are. As with many other outside vendors, those dealing with direct marketing support services and lettershop services make money on volume. Meaning that quality control, though a priority, may not be their top priority. So you need to be especially carefully that all printed material, databases and instructions are given both verbally and in writing.
In our experience, if you have never worked with the vendor, we suggest you do this in person. Although thanks to digital printing a lot may be done via phone, FTP and email, we still feel that these initial contacts should be done in person. And do not give this job to a new hire or an intern. That is just asking for trouble. This needs to be done by someone who has been at your firm for at least a year. Someone who can think on his or her feet.
Another important thing about vendors who offer direct marketing supports services and lettershop services is that they see direct marketing campaigns every day. They have a sense of what works and what does not. If they question some aspect of your campaign, listen to them. They probably know what they are talking about. And, as you and vendor build trust; you may find them giving you pointers that they only share with valued customers. We might add that the referral from you congressman, might also help grease the early client vendor relations. And you thought that was a crazy suggestion, right?

Contest management, mailings database management

July 6th, 2006

Contests can be an exciting part of a marketing campaign. But contest management and the attendant need for mailings database management must be considered before selecting a contest as part of any marketing campaign. If your marketing firm has engaged in contests before you already know this, but for those new to the process it seems important to at least go through some of the pitfalls, so you approach your contest fully informed.
What, you may ask, is contest management? Contests basically take care of themselves, right? No. And anyone who believes that is not only in for a world of trouble, but potential legal problems. For this reason, when creating a contest it is essential to create a project team which a specific project leader.
This project team will design the contest, operate the contest, and offer all the contest management support required during the contest period. Among the most important of contest management tools is mailings database and its management. Almost all contests require the contest applicant to send you something. A form, a box top, the answer to a question, something. And the receipt of all this material must be tracked, so that it can be shown that the contest function according to its rules — if questions are ever raised.
The project manager of you contest management team should appoint a single person to oversee the mailings database management. Like all records management activities this is uniquely important to ensure quality control. You may have the best data entry clerks on planet earth, but even they cannot do their job without a system. You mailings database management team and its leader will create this system, and ensure that it is efficiently and accurately administered.
It is probably best if you offer the mailings database management position to someone in your firm who is an expert in records management. This, for instance, might be a great chance to allow someone in research or even accounting to get a taste of the creative side of your business. Although running a contest is hard work, there is something inherently exciting about it. The promise of prizes. The randomness. The novelty. And because of these factors will believe you will have no problem attracting highly qualified people to the project in-house.
However, if you have no one in-house, we recommend selecting a contest specialist. Although there may be many people outside your firm who could handle contest management or mailings database management, it is always unwise to bring someone new into the equation who is not an expert in the task at hand. A new or temporary employee already has the problems of acclimating to your practices and procedures. In most firms, that can take days, even weeks. There is not need to complicate this process by forcing them to do “on the job” training.
Running a contest can be an exciting prospect. We highly recommend it. However, as we have laid out in this brief article, one needs to understand the importance of contest management and mailings database management. But, if you get this right, and we know you will, your client will be very happy. And so will those contest winners! And, by the way, make sure to send us an entry form!

Custom packaging, shrink wrappings

July 6th, 2006

When manufacturers first consider a product, they often discount the issue of packaging. They seem to think such decisions can wait until the product is ready for production. In many cases this may be true. However, some thought must go into packaging very early in the design process; because if a product requires Custom packaging or shrink wrappings this could play a vital role in the budgeting and marketing of that product.
Let us face it, as consumers we love Custom packaging. Something unique and individual that helps pull us into the world of that product. And there is something strangely wonderful about shrink wrappings. It conveys that valuable message: This product was made for you and no one else. And ripping that shrink wrapping makes us truly take ownership of the product.
However, as much as we as consumers may like these things, we as business people understand that Custom packaging and even shrink wrappings bring with them unique costs that must be evaluated. Custom packaging may require the use of industrial designers, it may require extra rounds of testing; and shrinking wrappings involve an extra layer of costs which may not be required on all products.
Custom packaging may also present storage and shipping problems. A custom package may not be as easy stacked on a warehouse floor, or as easily prepared for shipping. And although Custom packaging often attracts consumers, it may do the opposite. For this reason, your product may need to go through focus group testing on the Custom packaging alone. Another cost.
But, on the other hand, we all know a square box can be dull; and we all know that products without shrink wrappings look “cheaper” to many consumers. So where does that leave us?
It leaves us where we often find ourselves when faced with any business decision. It leaves us forced to weigh our options. However, we think there are series of questions you might consider which can help you weigh your options in smart and efficient manner.
In regards to Custom packaging, ask yourself these questions: Is your product unique? Does your product require some special understanding or explanation? Does your product appeal to an upscale market? If you answered “yes” to any or all of these questions, then we feel that Custom packaging should be considered. Unique products, products which require special explanation, or upscale products can benefit from Custom packaging.
In regards to shrink wrappings, ask yourself these questions: Is the product perishable or viewed as perishable? Could handling the product by others easily damage it? And does cleanness or sterility play a role in the use of your product? Again, a “yes” answer to any of these questions means you should at least consider the use of shrink wrappings.
We hope this brief article has helped you get a handle on some of the issues you need to confront when making packaging decisions. Custom packing and shrink wrappings can add value and appeal to your product, but they come with a unique set of costs. Only by properly examining your product and its customer base will you be able to determine if your product is worth this additional expense.

Distribution logistics, warehouse distribution

July 6th, 2006

Distribution logistics play a valuable role in any warehouse distribution system. Every warehouse is unique, and thus has its own unique Distribution logistics. It can be something as simple as the number of floors or something as complex as the computer system used. But whatever causes them to be unique, Distribution logistics must be taken into account when designing any service which utilizes warehouse distribution.
It has been said that a retail business is only as good as its channel of distribution. It could be equally stated that Distribution logistics are the current that makes that channel flow. Many managers make the mistake of creating a “one size fits all” approach to warehouse distribution. They believe that all warehouses should operate in essentially the same manner, and the way to achieve this uniformity is through uniform Distribution logistics. Nothing could be further from the truth.
There are fundamental reasons for this.
Let us look at a simple example.
Say a firm has one warehouse which operates with two shifts for packers and shippers. The same firm also uses two other warehouses which have three shifts. Is it logical to simply put a third shift on the first warehouse so all the Distribution logistics can conform? Of course not. There may be very good reasons that the first warehouse only has two shifts; and merely creating uniform Distribution logistics for this warehouse may create more problems than it solves.
In addition, output rates are often seen as a sign of the success of the distribution logistic in any warehouse distribution scheme. However, again, even output rates only tell part of the story. You need to examine the full nature of each warehouse’s Distribution logistics to come to a determination of the logistical scheme which most suits that particular warehouse.
Distribution logistics in any warehouse distribution system should be viewed in much the same way individual workers are viewed. Some workers can work double shifts, but can only do this for a certain period of time — before needing to take personal days. Others work better sticking to one shift, but rarely take personal or sick days. Which is the more valuable employee? Neither. Both perform their jobs in a manner the company can utilize, but both require different work patterns.
It is exactly the same way with the Distribution logistics in any warehouse distribution system. What works in one warehouse, may not work in another. What optimizes the distribution systems in one warehouse may cause problems in another. However, this is not an excuse to allow retrograde practices to continue. If a certain warehouse is truly underperforming, something needs to be done; and uniformity could be the answer. This is merely to say that Distribution logistics is not a “one size fits all” affair, and should not uniformly be treated as such. Each warehouse should be studied, its practices examined, and then decisions can be made.
Obviously, successful practices from other warehouses should be tried. But it is important to first examine why the variation in practice has occurred in this particular warehouse. It may possess certain values that initially went unnoticed. For these reasons, we feel that Distribution logistics in a warehouse distribution system require some of the most care and attention of anything in the distribution chain. So think twice before suggesting uniformity. It may sound great at a board meeting, but its real world application could be truly disastrous. And that could have damaging effects not only on your business but your career as well.
And we would not want that, now would we?

Fulfillment product services, fulfillment services

July 6th, 2006

We in the retail sector engage in discussions of Fulfillment product services almost too often. But, in these discussions, we often forget some of the key issues which make Fulfillment services so important to our sector. This is to be understood and is a common byproduct of any intra-industry discussion. For this reason, it is important to occasionally step back, and view the subject of Fulfillment services in the most basic manner. By doing this, we believe that managers can assess the specifics of Fulfillment product services through a simple and down-to-earth prism.
So let us begin with the most basic question:
Why are product Fulfillment services so important?
It is such a basic question; you may find yourself initially at a loss to answer it. Or the initial answer which comes may seem too simple. Do not let all this worry you. The answer is simple: Product Fulfillment services are important, because when they work they insure that your customers get their products in a timely manner, and when they are not working your customers will not. Or too simplify this even farther: Your customer want his or her product, product Fulfillment services gives it to them.
Studies have shown that speed of delivery can be the chief determining factor in whether or not a customer returns. More than quality, more than reliability, more even than customer service. So whether you function as part of in-house product Fulfillment services team, or you work for a dedicated product Fulfillment services firm; you must remember the importance of your role.
When a package arrives at a customer’s home, or on the loading dock of a company, you are sending an important messages about the company you represent. If the product is late or the contents incomplete or damaged; you have sent a very negative message. It will be read in a distinct, emotional and unambiguous way by your customer. They will think you do not care about them.
You may see product Fulfillment services as yet another emotionless cog in the vast machine of business. But you would be wrong. This is one of the most emotional parts of the business world. If a customer orders a product he wants or needs that product. Both “wanting” and “needing” are emotional states. In fact, they are often described as “unfulfilled” emotional states. So product Fulfillment services do not merely fulfill product needs but emotional needs as well.
Product Fulfillment services suddenly sound much more interesting, right?
Of course, simply understanding that Fulfillment services operate in an emotional sphere, does not divorce you from the more commonplace problems you face on a daily basis as a product fulfillment manger. But it does give you a greater understanding of the layers of meaning in the activity, and why customers often express seemingly undue anger when product Fulfillment services fail them.
Product Fulfillment services provide a valuable link in the marketing chain; and stepping back and viewing some of its most basic components provides us a new and unique perspective. And, in life, we all need that.

ERP Enables Growth for Biotech Instruments Maker

March 30th, 2006

To streamline its customer service and other business processes, Coretech Holdings needed an ERP solution that would work with a number of legacy systems it already had in place. Download this case study from Exact Software to learn why the St. Louis-based manufacturer of specialized instruments for clinical diagnostics and biotechnology research chose Exact’s Macola ES solution. The paper explains how the Macola ES system has solved the company’s immediate ERP needs while simultaneously setting the stage for future growth.