All posts by davidsoxman

Email Marketing, Marketing

You Can Buy My Loyalty, for a Price

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You found it, the exact item you were looking for.  You did the Google search, found the website for the company that sells that item and you go to their website.  You place your order and provide your credit card information and then comes that little harmless question: What is your email address so we may send you a confirmation of the order?  They say they will never sell your address to anyone else so you give it to them.  Then what?

Many of us have experienced buying an item online from a retail store to then be bombarded with every kind of email and direct mail offering that the company can come up with.   This happens to me even if the product I purchased has no relation with the offers that land in my inbox daily.  Annoying, isn’t it?

This is probably not going to gain me any friends, but I whole heartedly support this method of marketing, which is called Loyalty Programs, because if done correctly, they can be very successful.  The problem is, that so few companies go the extra step to insure success.

Loyalty programs go back a long ways,  I can honestly say I remember S&H Green stamps, given out by the local grocery store based on how much was spent.  My Mom would paste them into books that were used to redeem them.

Times have changed and Loyalty programs have gotten a lot more sophisticated through special on-line incentives, free shipping, discounts for referrals, etc.  But, have they necessarily gotten more successful?  Do they provide the return on investment to the marketer?

According to research by InfoPrint Solutions Company, a joint venture between IBM and Ricoh, the answer is a dismal no.  I recommend you read the entire article at The CMO Council website but I’ll try to summarize here.

From the consumers’ viewpoint, the study indicated that a “surprising 79 percent of consumers surveyed say they are very, or pretty, satisfied with their loyalty and rewards program experiences. But 70 percent want to see more discounts and savings, and 52 percent more compelling personal deals and offers as reward for steering their business to loyalty program operators. In a definitive call for personalization, 58 percent say they want more compelling personal benefits and services, as well as more relevant offers or individualized deals.”

What’s interesting is that it appears that the wealth of information that is gathered by marketers about consumer behaviors, wants and desires is either being ignored or not being coalesced to provide more relevant offers.  Why in the world if I order a straw hat from Bass Pro would they assume that I would want to see offers for guns, bows and arrows and camouflage clothing?

Something else that was interesting, it seems the state of the economy has very little influence on loyalty club participation so even as we move down the road toward recovery, these programs will still have an impact on buyer behavior.

With the average household enrolled in 14.1 loyalty programs but only active in 6.2 of them, doesn’t it make sense to be making offers that stimulate action?

If you’re thinking about a loyalty or referral program, make sure you understand how often your customer wants to hear from you, in what form they want to hear from you and what it is that will drive them to buy.

I’d love to know your thoughts.

Email Marketing

An Argument for Spamming

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I recently read an article written by Todd Natenberg, who owns a company called TBN Sales Solutions.  It was in the local Kansas City newspaper in the business section but what caught my eye was the article’s title “In Defense of E-mail Spam.”  Having written a post recently about your online email reputation and how spam can all but destroy it, I naturally was very interested in what Todd had to say.

He believes that the concept of “opting-in” to receive future email solicitations is a flawed system as there are people that will opt-in who are not good candidates and there are those who do not opt-in that may very likely purchase your product in the future.  Situations change and therefore the statement of not “opting-in” now may not be valid later.  He says, “No business wants to merely send out an email. The goal is to have that email lead to action in the form of purchasing of services (or products).”  He raises a valid point that small businesses, who are the foundation of our economy, cannot afford the massive advertising expense to get the word out that they exist, and if you have “no call” lists and anti-spam laws, that you have severely hindered small businesses’ capability to market themselves.  They must have the ability to do economical email marketing.

Todd raises good points but here is where I believe his theory isn’t relevant anymore.  The traditional forms of blasting out a message to the masses, regardless of whether it is radio, TV, magazines, or …email, is rapidly losing its effectiveness.  Saying your message over and over, or louder and louder, hoping to find someone who might be interested only irritates and doesn’t promote the building of a relationship.  Seth Godin talks of this in his blog entitled “Bullhorns are Overrated,” where he says it’s probably better to find many people who choose to listen. Asking someone whether they would like to hear from you via email and how often they would like information is one of the best ways of building goodwill and lasting loyalty.  This is why the social media pilgrimage has built to such a crescendo.

One other thing I believe Todd omitted.  I don’t think we can fully comprehend the physical load on email server hardware if we were to “open the faucet” to unabated email solicitations.  The shear volume of “spam” could task these resources to their limit, forcing providers, companies, etc to make investments in additional hardware, the costs of which would ultimately be passed on to you and me as consumers.

What do you think?

Branding, Marketing, Public Relations, Search marketing

How to Use Storytelling in Your Marketing Message

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Over the holidays we had relatives stay with us that live in France and as such, we don’t see them very often.  It was a relaxing time which gave ample opportunities to talk and share memorable events in our lives.  As we sipped hot tea (some of us having a nice malted beverage) and munched down fudge and party mix, the remembrances of the past came flowing out one after the other.  I was struck by how Tony related his experiences.  Every time he talked of an experience, he made the event into a story and I found myself being pulled into what had happened.  The mental images that he helped me visualize through his storytelling were so vivid that I felt I had lived the same experience.  I was captivated by the word pictures he painted and on a very emotional level, I could connect to what he felt at the time.  We laughed and enjoyed these stories well into the wee hours of the night.

We humans are a very relational species.  When other humans have an experience that is similar to one we have had, there is a bond created; an emotional connection that brings relevance and social camaraderie.  There is solidarity in our mutual experiences. Even if we do not know the other person, this solidarity enhances trust and brings forth from our subconscious memories, both remembered and forgotten, that are the foundation for the preferences and attitudes we now have.  Those very preferences and attitudes have strong effects on our buying decisions.

This is why it is imperative that you tell a story when communicating with prospective buyers, whether on the Internet, in a print ad, in a press release or even in your corporate mission statement.  You must be able to tap into that emotional connection that will take a buyer from being just interested through consideration to the decision to purchase.  And this is true whether you offer a product or service as well as whether your customers are individual consumers or other businesses.  It’s all about people relating to people.

As you know, most stories have basic building blocks:

  • A story has a plot that can be followed from beginning to end
  • A story has a hero (maybe your company, right?)
  • A story has a villain (not necessarily another person as it could be circumstances or inanimate objects that are villains)
  • A story has a problem that must be solved
  • A story has a transformational moment, when the problem is solved

In her book entitled “The Story Factor: Inspiration, Influence and Persuasion Through the Art of Storytelling,” Annette Simmons says there are six kinds of stories that can be used in building a brand:

  1. Origin – formation and background of the company
  2. Purpose – shows why your company is in existence
  3. Vision – where your company is going
  4. Education – so people can put your product in context
  5. Ethics – what you’re doing right
  6. Connection – with the company

So, what story can you tell about your company or product?  How can you use storytelling to make that all important emotional connection?

I’d love to hear your thoughts.

Marketing

Pay for Marketing Based on Performance

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I’m sure you remember in school the preoccupation everyone, including your parents had with grades.  Everything you did from homework, to studying for exams, to extra credit projects, or in rare cases the decision to cheat, was based upon making the grade.  Your entire future, you were told, hinged on your ability to achieve high marks.  And even though it may have seemed arbitrary, it was the teacher who determined if you had accomplished what they wanted and that you deserved a high grade.  Didn’t really seem fair?  It was our first real taste of life, now wasn’t it?

Advertising has traditionally been priced based on the model of how many eyeballs are estimated to actually see an ad.  The model of CPM (cost per thousand impressions) is the foundation for determining the value of ad time, placement, geography, location, space and medium.  But as David Koretz says, this form of pricing is doomed, in favor of a performance based model such as a cost per action (CPA) or a cost per conversion (CPC).  Although there are many arguments on either side of this debate, and this is good fodder for another blog, the concept of performance based pricing is not going to go away.

The marketing industry has struggled a long time with the concept of payment for performance.  The idea that the marketing firm should take the risk rather than the client is rather terrifying because it feels like too many things are out of the direct control of the marketing company.  What if the product being marketed isn’t that great and people don’t buy?  What happens when the economy goes into a tail spin and sales fall?  What if the CEO gets into trouble by doing something unethical or illegal?  What if……….  All of these are great questions.

My opinion, and I know it’s not going to be popular with others in my line of work, is that marketing companies and consultants should be paid (and fired) based upon their ability to perform.

This is my take and how I conduct my business.  I am going to make sure that there are clearly defined goals and expectations for all parties involved and that sound methods are in place for measuring progress.  I am going to put into place contingency plans just in case something unexpected happens.  And, I’m going to make damn sure that the product or service being offered by my client is good enough to be successfully marketed.  Lastly, if I am successful, I should be paid handsomely for that success.

Can you think of other products or services that we should pay for based only on performance?