This document discusses the cardinal principles of direct marketing success. It begins by stating there are no "always" rules in direct marketing, but there are many "almost always" principles that are often counterintuitive. It then outlines 8 cardinal principles: 1) Establish a clear and simple objective, 2) Make the right offer to the right audience at the right time, 3) Write copy that shows what the product will do for the prospect, 4) Ensure a positive customer experience, 5) Think in terms of ongoing campaigns rather than one-time promotions, 6) Ensure promotions fit the unique selling proposition, audience and product, 7) Conduct research and testing to inform tactics, and 8) Focus on lifetime customer value.

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There are no
“always”
in direct marketing
§ But there are many
“almost always”
– And they are often
counterintuitive
8 Cardinal Principles
for Direct Marketing Success

2. www.DirectMarketingSmarts.com ©2016 Smith Browning Direct, Inc. No Reproduction allowed.
Cardinal Principle #1:
Establish your objective and keep it simple
3 Ways to grow revenue:
1. More customers
2. More purchases
3. Larger purchases

3. Paradox of
Choice
§ Customers say
they want choice
– What they really
want is a
solution that fits
their needs
§ Choices confuse
– Confuse = Lose

4. ©2016 Smith Browning Direct, Inc. No Reproduction allowed.
Cardinal Principle #2: Make the right
offer to the right audience at the right time
The Foundation of
Direct Marketing
1. The list or audience
you target
2. The offer or
proposition you
make
3. The creative
execution you
choose
List
40%Offer
40%
Creative
20%
A great offer sent to the wrong audience is still a failure.
Brilliant creative won’t save a weak offer.
80% of your
success - List
and Offer

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The right offer to the right
audience at the right time
Echo
Entry

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Cardinal Principle #3: Write copy to
show what your product will do for
the prospect.

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Cardinal Principle #4:
The customer experience
must be

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§ IBM: Every $1 invested in usability
= $10 – $100 return.
§ Edward Tufte (information design
guru): “The most common user
action on a website is to flee.”
Usability
– ease of use, satisfaction, efficiency

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Be ready for response in all channels
TV

10. Mobile Friendly
website design
m. Site
(mDot)
Responsive
Design
Adaptive
Design

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Mobile Friendly vs. Mobile Optimized

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Cardinal Principle #5:
Think campaign,
Not 1-shot promotions

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• 1 perfect moment
• 1 perfect channel
• Unlimited
budgets
✗
✗
✗

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Basic Rules for
Multichannel Synergy
1. Choose the right media
for the target audience
2. Speak with 1 Voice
3. Have a compelling offer
and memorable
message

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DNB Bank Super Save
§ Challenge
– Typical year’s new accounts: 70,000 – 80,000
– First ad campaign generated awareness, buzz and advertising
awards but only 86,000 new accounts
§ Objective: Grow bank’s new savings deposits by 400%
§ Strategy
– Develop strong offer
» Super Save: 3.2% for automatic monthly savings
• (vs. 2.85% regular rate)
– Create engagement to grow response
– Leverage existing customer audiences
DMA
Diamond
Echo
Finalist

16. DnB Bank Super Save
Super Save Campaign
Ad 1 DMADiamondEcho
Finalist

17. ©1998-2016 Smith Browning Direct, Inc. All Rights Reserved.
Super Save Launch
Banner ads
Facebook ads
Online video
explaining
Super Save
benefits
Home and
Landing Pages
Newspaper
Advertising

18. ©2016 Smith Browning Direct, Inc. No Reproduction allowed.
Customer
Marketing
Targeted Emails
Super interest for you with
Super Save from DNBWatch TV2 tomorrow at 6:47pm
or watch it here now.
Online Banking
Customized Offers
Save a bit more.
It matters a lot in the long run.

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Bank Branches
Retail support
“Treasure Hunt
starts October 8”
“It’s easy to get started - Sign up
for Super Save here or go online”

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Engagement: Find the Stolen Treasure Chest
Facebook Clues
Mobile Site
Microsite –
Treasure Hunt Game
Register to play for
$50,000 Savings Bounty
Radio hosts promoted
SMS text clues

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Results
§ Normal year ≈
70-80,000 new
accounts
§ Super Save goal =
350,000 new
accounts (+400%)
§ Actual = 430,000 new
accounts (+500%)
“Some people are lucky in life.
For the rest of us, it’s smart to start saving.”

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What media do most
direct marketers use?

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U.S. Direct & Digital Spending 2016
Direct Mail
29%
Teleservices
27%
Search
19%
Display
18%
Other Digital
4%
Email
1%
Insert Media
0.5%
Other
2%
Winterberry Group
2016 Annual
Outlook
$163.7 Billion

24. ©1998-2016 Smith Browning Direct, Inc. All Rights Reserved.

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Digital Channels play different roles in the customer journey
Source: Google Analytics/ThinkWithGoogle.com

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27. ©2016 Smith Browning Direct, Inc. No Reproduction allowed.
Cardinal Principle #6: Your promotions must fit your
USP, your audience, and your product.

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Cardinal Principle #7
Research for insight,
Test for tactics

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Research:
§ The possibilities
– What people think
– What motivates
them
– Which creative
approach or offer
appeals to them
– Their reactions –
what they say they’ll
do
Testing:
§ The realities
– What they responded
to
– By how much
– Which audience, offer,
creative, premium,
etc. performed best

30. www.DirectMarketingSmarts.com ©2016 Smith Browning Direct, Inc. No Reproduction allowed.
Cardinal Principle #8:
Focus on the
Lifetime Value of the Customer

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What does attrition cost?
§ It costs 5 times as much to acquire a
new customer as to retain one
§ Most companies lose 20-25% of their
customers every year
§ If attrition is cut 5 percentage points,
you can add 25 - 75% in profits to the
bottom line – Why?
– Frederick Reichheld, Bain Consulting

32. ©2016 Smith Browning Direct, Inc. No Reproduction allowed.
“If you can’t measure it,
- Peter
Drucker
you can’t manage it.”

33. www.DirectMarketingSmarts.com ©2016 Smith Browning Direct, Inc. No Reproduction allowed.
1. Have a
clear &
simple
objective
2. Focus on
list and
offer first
3. Sell
benefits not
features
4. Make It
easy5. Think
campaign
not 1-shot
7. Research
& test to find
truth
6. Make
promotions fit
audience/USP
8. Evaluate
success by
LTV
Direct
Marketing
Success

34. www.DirectMarketingSmarts.com ©2016 Smith Browning Direct, Inc. No Reproduction allowed.
§ Over 13,000 professionals have
attended Beth’s direct marketing
courses on 5 continents
§ 35-year career direct marketer
§ Creator and Educational Director
of the DMA Direct Marketing
Institute
§ DMEF Ed Mayer Award recipient
for lifetime contribution to direct
marketing
§ DMA Board of Directors Executive
Committee 2010-2013
www.DirectMarketingSmarts.com
beth@DirectMarketingSmarts.com
Beth Smith

35. On the job it takes years, with us it takes just 3 days.
Attend DMA’s most popular seminar:
The Direct Marketing Institute*
Beth Smith, Creator and Educational Director
§ Direct Marketing’s Cardinal
Principles
§ Digital Marketing Done Right
§ Direct Mail in a Digital World
§ Lists, Data-driven Marketing,
and Retention Strategies
§ Graphics & Design for
Response in All Media
§ Offers & Propositions that Melt
Away Inertia
§ Creative and Copywriting that
Sells
§ Research & Testing to Learn
Faster than Your Competitors
§ Multichannel Marketing: Synergy
and media selection, overview of
DRTV, Display Ads (digital and
print), Social Media
§ Catalog Marketing – Print and
Digital
*Private in-company customized sessions also available in 1, 2 or 3-day versions.
Sign up now:
DMA Direct Marketing Institute
Or contact Beth Smith: beth@DirectMarketingSmarts.com