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Tuesday, April 05, 2005

Top 10 ways to get more sales

My first job in DC was working for the Center for Science in the Public Interest, the nation's leading consumer group concerned with nutrition issues (they are also active on other health issues). CSPI derives the bulk of its income from its Nutrition Action Healthletter, a self-help newsletter about nutrition. While CSPI considers recipients of the newsletter to be "members," most likely subscribe for the self-help benefits.

Because of the newsletter, I had a great deal of exposure to direct marketing (the newsletter is sold by direct mail) and because it's measurable, direct marketing is probably the best grounding there is for marketing. These tips below are really to the point. Nothing prevents you from applying this marketing strategy to your general marketing program. (E.g., any Main Street program in the country could modify the "pizza and a movie" promotion from below to some sort of cross-promotion activity with the businesses in your commercial district.)

From Steven Lorin McNamara and AdCracker via the Building Brands e-newsletter:

Top 10 ways to get more sales from your direct marketing program

1) Make stronger offers:
The old maxim is, "The more you give the more you will get." More people will order when you offer 25% off than when you offer 10% off.

But "giving more" does not have to mean "spending more." It does mean that the offer has to be charming or useful or interesting to prospects.

Example: a small pizza shop owner in Michigan approached a local video store and together they launch a "Pizza and a movie" special on Friday nights. Little Ceasers Pizza teamed up with Blockbuster Video on the same offer, nationwide.

Look for partners. And remember, different demographic / psychographic slices of your target audience will respond to different offers.

2) Mind the basics:
Get the offer up front. Tell readers clearly what they will get. Tell them clearly how they will benefit. Tell them clearly what to do, what action to take. Set a deadline. And provide multiple ways for them to respond.

3) Budget based on lifetime value:
It is not what you spend, but what you will earn over time that counts.

In one example a software company spent $500 each on customized CD mailers to 20 hard-to-reach prospects. They landed three customers, at a 5 year average net value of $206,000 each.

The math tells the story. Spend more on higher value prospects. And be sure to calculate, and factor into your results, the lifetime value of the customer.

4) Close the circle:
A complete direct response program includes plans to a) identify prospects and turn them into customers, b) turn customers into better, more profitable customers, and c) turn your best customers into evangelists.

5) Test:
Test technology such as digital video, Web sites, CD brochures and email newsletter.

And of course, test different offers. At different times of the year. With different segments of your list or audience.

6) Reflect the brand:
Too often there is a disconnect between the DM staff down the hall and the brand team on the third floor. Or between your direct agency and "creative" shop.

Your direct marketing staff and vendors should understand the brand's personality, nature of the brand's relationship with customers, and icons. Then express those brand characteristics in the copy tone, design, and offers.

7) Innovate:
Encourage creativity. Learn better ways to brainstorm. Reward unconventional thinking.

You may think this should fall under the Test section above. But it is so important, and so frequently overlooked or poorly managed, that it deserves its own section.

Here's one example why: In less than a decade Capital One grew from two guys with a good idea to a Fortune 500 company ... and the largest direct marketer in the USA.

That growth has been driven by innovation. Capital One invented the credit card balance transfer. And has have tested such offers as "Win a free island."

8) Optimize your Web site:
Not only with search engine friendly keywords and copy. But optimize your Web page to work hand-in-hand with your direct marketing program.

Example: Use your Web site to deliver offers, such as .pdf downloads of your brochure. Or "How to" videos. Or discount coupons.

9) Learn why people say "No,"
Research, ponder, ask and learn why people do not respond, why they do not accept your offer, why they do not visit your shop. Then counter those reservations.

10) Broadcast why people say "Yes."
Get testimonials. Build case studies. Use real people, real users, real customers in your advertising. That can be the most powerful, the most persuasive way to talk to prospects.

© AdCracker 2005 and Steven Lorin McNamara. Excerpted with permission from AdCracker CD 2005. All rights reserved.

2 Comments:

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At 1:54 PM, Anonymous Anonymous said...

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