Direct Mail Secrets

Many marketers discount direct mail as an ineffective and outdated marketing vehicle. In fact, direct mail is still one of the most cost-effective marketing methods available for BOTH business-to-business and business-to-consumer marketers.

Why is direct mail an effective marketing tool?

1) It can be highly targeted
2) It can complement other marketing methods
3) It can be turned on or off to balance sales peaks and valleys
4) It can be easily to tested to show Return-on-Investment
5) It is a great marketing vehicle for firms with a limited marketing budget

My telecommunications clients love direct mail. It allows them to target only geographic areas where customers can get High-Speed Internet service. In the past they would spend their marketing dollars "spreading the word" to thousands or in some case millions of people that could not even get their service. The result? Frustrated customers that could not get the service and wasted marketing dollars.

Direct Mail Secrets

1) Direct Mail response rate is effected by three things:
* List (60% of direct mail response - on average - is due to the list)
* Creative (20% of direct mail response - 0n average - is due to the creative)
* Offer (20% of direct mail response - on average - is due to the offer)
2) Test your lists. Test your creative. Test your offer.
3) Don't give-up after a couple of campaigns...see #2 above.
4) Don't be afraid to spend $1.00 or more per piece...the response rate could be worth it.
5) It is all about the cost per call, cost per appointment & the cost per sale.
6) Track your response rate with 800 numbers and landing pages.
7) Seek list vendors with a strong track record - Ask a professional for help.
8) Don't use poor creative - A piece developed in Word creates a poor image and simply won't get the response you need. Get professionally designed pieces.
9) Ask your prospects what kind of offer would appeal to them-Don't guess.
10) Coordinate your direct mail drops with your business cycle and call volume.

If you would like to discuss how to improve your firm's marketing return-on-investment feel free to contact Dave directly at (262)949-4969.

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B2B Marketing Budget Trends

How does your Business-to-Business marketing spending compare with current trends? Here is some of the latest data to help you benchmark with other U.S. firms.

1) B-to-B Direct Marketing Spending (change from 2007 to 2008)

• Internet Marketing +18.5%
• Direct Mail (Catalogs) + 6.3%
• Direct Mail (Non-catalog) + 6.1%
• Magazine + 4.4%
• Radio + 4.0%
• Telephone Marketing + 2.2%
• Newspaper 0%

Source: Direct Marketing Association 2008
2) B-to-B Internet Marketing Spending (Projected change 2008 to 2009)

• Website +74.0%
• Email +70.1%
• Web Search +64.3%
• Video +39.5%
• Banners +36.4%
• Social Media +26.2%

Source: 2008 Marketing Priorities and Plans Report - BtoB Magazine

3) Marketing Area Budget Proportions

• Product Marketing 18%
• Branding/Advertising 17%
• Field Marketing 15%
• Corporate Communications 12%
• Channel Partner Marketing 9%
• Marketing Operations 9%
• Marketing Research 7%
• Inside Sales/Telemarketing 7%

Source: B-to-B Marketing in 2008 - Forrester Research

SmartSkim website Goes Live

Sales Sherpas is delighted to announce the launch of the new SmartSkim website. The new website is going to help increase the volume of qualified prospects and maximize the SmartSkim brand awareness in the marketplace.

www.smartskim.com

Universal Separators is the manufacturer and marketer of SmartSkim products and is based in Madison, Wisconsin. SmartSkim products are the premier provider of tools for skimming and capturing floating oils and other contaminants from industrial process fluids.

Sales Sherpas went through the following steps when developing the SmartSkim website:

1) Discovery of company strategy and goals
2) Review of current online presence
3) Determination of gaps between current online presence and desired presence
4) Review of the competition
5) Development of a website architecture map
6) Creation of website copy
7) Design of the home page
8) Design of the secondary pages
9) Integration of graphic and multimedia elements
10) Programming of the website
11) Website usability testing
12) Website launch

Sales Sherpas included the client of all steps of the process including weekly WebEx sessions. This ensures Sales Sherpas delivered exactly what SmartSkim needed, on-time and within budget.

If you are in need of an improved online presence to drive more qualified prospects to your business please contact us:

800.287.7198

or

inquiry@salessherpas.com

Marketing Tips for Tough Times

I cannot start this blog without addressing all the "doom and gloom" that we are getting bombarded with everyday. Yes, oil prices are up. Yes, the dollar weak. Yes, the housing market is rough. Blah, blah, blah.

As marketing and sales leaders if we buy into all of the "doom and gloom" eventually it is going to affect our morale, our energy, and drive to succeed. So, before we can address marketing strategies in tough times, make a conscious decision not to dragged down by all of the pessimism in the media.

Tip 1: Less News!

I am not advocating that you move to a remote part of Siberia and cut yourself off from the world. But cut back to 10-15 minutes of news per day and replace that time listening to some of your favorite music or getting some exercise. I used to listen to/watch/read an hour of news a day and cut back to 15 minutes and it was incredibly rejuvenating and liberating. I get all of the headlines and will "drill down" into stories on the web when it is mission critical. Spend the time you used to use getting depressed doing something you enjoy. Once you do this you will find your energy increases, your outlook improves, and you will succeed.

Tip 2: Get Real

Once we re-capture our energy we need to get a solid grip on where we are at. Have you been burying your head in the sand because sales are down or not achieving goals? Take a look at that sales forecast and determine your year-to-date sales to budget. Overachieving? Great, keep doing what you are doing and look for new ways to boost business even more (see tips below). If sales are stagnant or not achieving sales forecast you need to reassess the goals. Are they still achievable? If they are not achievable it is ok to re-forecast. I know this could be considered heresy in some organizations but I have seen too many companies where the marketing departments and sales organizations are chasing completely unachievable goals. Guess what happens? Everyone gets demoralized, goals are missed, the best people quit, and you are left with the laggards. So, get realistic sales goals in place.

Tip 3: Cut the crap

Once we have defined our realistic sales goals and we know what we need to achieve we can start formulating new marketing strategies. Many of my clients used to conduct a great deal of marketing that did not generate any sales or at least none they knew of. If you are Coke or P&G this next part is not relevant to you. If your marketing budget got cut by 10%/15%/20% or more you have to come up with new marketing strategies. We cannot simply reduce our spend on every marketing vehicle and hope for the same or better sales results.

Steps:

1. Open up an Excel spreadsheet (I know some marketers will break out in hives here)
   
2. Type all of the marketing/advertising mediums you use in one column
   
3. In the next column write down "measurable" or "unmeasurable" next to each marketing/advertising medium you use. (Example: Company newsletter - Unmeasurable, Direct Mail - Measurable)
4. In the next column put your budget for each marketing/advertising medium
5. Now add the budget dollars for all of the "unmeasurables." This is the money you should first look at to pare back.
   
6. There could be some "sacred cows." But tough times call for tough measures. Maybe you need to kill the company newsletter? Maybe you need to kill that sponsorship? Maybe that skybox at the stadium needs to go? Maybe you suspend TV advertising for a quarter?
7. Once you have done this you should have a list of measurable marketing mediums and also perhaps budget dollars for new measurable marketing mediums

Tip 4: Open your mind

Open your mind to new marketing methods that are measurable:

1) Direct Mail - Direct Mail done effectively it works. Think about what a 1% response rate could convert into in terms of sales. Combine with an outbound calling campaign and watch your results soar.

2) Email Marketing - Email marketing can yield quick, measurable results. You need to be careful of "CAN SPAM" laws. We only advocate sending email marketing to current customers that have "opted-in" to receive the emails. The emails need to be relevant, concise and provide a on-going incentive to receive the emails.

3) Landing Pages - I am still amazed at the number of firms still not using landing pages as a way to measure their marketing campaigns. Creating a landing page is extremely cost effective and can provide metrics to marketing vehicles that were previously impossible to measure (e.g. billboards).

4) Loyalty Programs - Sometimes we get too focused on generating new business meanwhile customers are fleeing out the back door. Analyze the lifetime value of your customers. Determine the most valuable customers and develop loyalty programs that keep them happy and keep them with you.

5) Referral Programs - The old adage goes "the best source of customers is...other customers." Think of your happy customers as a 100% commission sales force. Provide incentives for referrals. If you are selling consumer goods perhaps a gift card or discount on a bill will work for each referral that turns into a sale. If you have a long sales cycle or you are selling capital goods perhaps a free round of golf at the best local course for each referral that turns into an appointment.

In future blogs we will explore some of these measurable marketing mediums in-depth and also provide you some new ones.

So Remember:
1) Less News
2) Get Real
3) Cut the Crap
4) Open your Mind

All the best,

Dave Gee

Sales Sherpas
www.salessherpas.com
800.287.7198