Direct marketing workshop Wazzap in Tallinn, Estonia

Trends & ideas
for success
in direct
marketing Michael Leander
• michael@michaelleander.me
•@michaelleander < Twitter
•Facebook/Linkedin “Michael Leander”

In closing

• Remember there are two kinds of people

Thin

Which
problem
are you
solving?

@michaelleander
#password

facebook.com/michaelleandernielsen

Pinterest.com/michaelleander

Facebook.com/
michaelleandernielsen

Best question wins
this book

Get 19 direct marketing case studies.
email michael@michaelleander.me

How would you describe direct marketing?

I. A marketing activity direct to a potential
buyer?

II. A marketing activity that requires a
response?

Whom is it cheaper to sell to?

New customers Existing customers

Existing customers generate ”cheaper”
revenue and recommend new customers

Recommendation

Reviews og
endorsements

WOM &
1-on-1
sharing

Which is cheaper to use for
attracting a sale?
Email
market
ing

Direct
mail

Social
media

Media channel effectiveness, simplified

DIRECT & Cost per Cost per Convert to Actions Cost per
OUTBOUND contact thousand action (sale) action

Canvas call by 1.400,- 1.400.000,- 20% 200 8.325,-
account manager
Telemarketing 100,- 100.000,- 5% 50 2.000,-

Direct mail 50,- 50.000,- 2% 20 2.500,-

E-mail 10,- 10.000,- 0,75% 7,5 1.333,-
SMS/MMS 7,- 7.000,- 0,15% 1,5 4.667,-

• Test to find your optimal mix
• Decide: sender control or recipient control
• Combinations are often most effective in terms of ROMI

Integrating messages cross
channel
Response
increases, 100%
for direct mail
piece.

Teaser e-mail.
No online Direct Mail
response

Combined response
from e-mail and
direct mail is 125%
better than no e-mail.

Pre-mail, with
online response Direct Mail

Remember ! Your job
is about prioritizing

- What is your objective?
- How soon?
- What can be done?
- What is required to do that?
- How can this instrument
help me?
- Are there better ways to
accomplish my objective?
17

Email not so dead
after all...
(tell your friends &
colleagues)

Invest 1 US$ get 52, 43, 40, 39 US$ back

Email marketing still the best performing instrument – delivering
nearly twice as much as second place (SEM) in terms of ROMI

Use advertising on social networks to
practice your A/B split testing skills

Fact 1: Direct mail is still highly efficient
and plays on senses that digital cannot
Fact 2: Email marketing is growing, but
becoming increasingly difficult to handle
Fact 3: Gaining traction in social media is
not what most people think it would be

… and other new opportunities to
interact and get a response from
your audience using QR codes (or
not)

Me too, me too, me too,
me too, me too, me too !

Break down the terribly
inefficient silo thinking

Direct marketing is
multichannel multiply
ROMI by 5, 10, 25

Which reads the most words pr
minute – the eye or the ear?

2.500 words per minute 125 words per minute

See pictures from event here
http://www.facebook.com/michaelleandernielsen

WHAT DOES
THE PICTURE
ECONOMY
MEAN FOR
OUR DIRECT
MARKETING
ACTIVITIES?

Meet Good ‘ol AIDA
A = Attention (Awareness)
I = Interest
D = Desire
A = Action

Attention

Spend: € 22 Interest
Revenue: € 4.950

Desire

www.linktext.com > learn more about this masterclass Action
and see how attending can help you increase your
email marketing ROI www.linktext.com

Which Tweet was most effective?

Is marketing your game? Come join us on the Facebook
A page for learning & laughs

Best Facebook post this week (most shared), go see it
B here

C See what we are talking about over on Facebook today

https://www.questionpro.com/a/showReportTab.do?surveyID=3321214

What others said
See the survev blog post here

Which Tweet was most effective?

Is marketing your game? Come join us on the
0,45% Facebook page for learning & laughs

Best Facebook post this week (most shared), go
0,37% see it here

See what we are talking about over on
2,67% Facebook today

Axe girl wake me up

• Sign-up via
qualification
• IVR
• Different Axe girl
calls every day

Think: Solves a real problem in a fun way
(service) and generates continous awarenesss

Get

Get your 19 direct mail case
studies in mid January 2013

Send your request to Michael@michaelleander.me to get the 19 direct mail
case studies including a fantastic case study from Mediapost Hitmail Bulgaria

Allocation of focus in any direct marketing
activity – here specific to DIRECT marketing

Message/offer Target group

40% 40%
100%
20%
Creative

So how do we
continuously
acquire knowledge
about our prospects
and customers?

Significant changes in
the age of discovery
Transparency & trust
Relevancy
Customer intimacy
Multichannel mix
Immediacy

In your market, which percentage of
prospects are buying now?

3% are buying now

6-7% are open to the idea

30% are not thinking about it

30% don’t think they are interested

30% are sure they are not interested

The average time spent on a task
before being distracted or switching
to another is only
3 minutes 11 seconds.

Your target
prospect is
exposed to
6000 advertising
messages every
single day

In Estonia too brands are competing fiercely
for the attention of consumers

Consumers are becoming more
and more cautious

Trust is critical
Remember your trust emblems
(positive associations, testimonials etc.)

Short attention span, loads of intrusion
- how do you cut through the clutter?

Do I know you?
Do I need you?
Brain Can I trust
filter you?

How to get into the Mind Box?
Unique
passionate
emotional
authentic
focused
interactive
meaningful
…

Key problems for
direct marketers across the board

One size fits all Irrelevant content Inconsistency

And wrong choice of channels

Key trends changing buying behavior

Your web presence will become the front and center
of your direct marketing activities

Thanks to Eesti Post for being such
good “sports” when we did the 8 second test

Talk to Eesti Post about
your
direct mail campaigns
and testing

What your customers experience

Direct marketing campaign
from
utility company in Denmark

What makes the top 2% so
much better than the rest?

First a question – and then
let’s have a look...

Get busy checking the motor
• Focus on your target group
and its need
• Work actively with your content
• Align your sales process with • Offer/message first, then
the presumed/documented copy, then ”creative”
buying process • Test, test, test – if possible
• Experiment to learn and improve • Differentiate your
• ROMI must be central messages
• Use flowcharts. ALWAYS • Be creative to achieve results
• Online/offline in combination – not to win fancy awards or the
admiration of your peers and family
Do not leave anything
to chance

Significant changes in buying behavior
No sex on
the first
date

Referral &
recommendation

OTS* high to
get a reaction
Latency
increase
incubationtime

*OTS = Opportunity to see

Worth remembering

• OTS (Opportunity to See) is important
• Remember your sales funnel conversion tactics

Managing consumer buying processes

Really new ways: Will this influence?
http://archive.perhansson.com/nokia/greatpockets/

Which page generated most registrations?

275 conversions 110 conversions

Landing page #1 Landing page #2

The journey starts off site –
make it effective
Banner

The same goes for the copy in
your social media messages

About EADIM in London here http://www.eadim.com/eadim2011/?ap_id=leander

Pharma marketing article is here http://ht.ly/1f3IoZ

The direct marketing planning process

Get pictures
& more
concrete what
–to-do advise
at free
webinar

Get your invitation
michael@michaelleander.me

A B C
CTR: 26,22% CTR: 5% CTR: 10,32

Which one performed best in terms of CTR?

A, B or C?

The direct marketing funnel

• Where do respondents come from?
• Identify source + cost per Lead
• Where is each prospect top, mid, end of
funnel?

• How are we going to educate, nurture?
• What type of automation is required
• How are we going to score prospects
and customers?
• What is the minimum requirement for
differentiation?
• Where does marketing start and stop,
sales start and stop, retention start and
stop.

Better profiling gets 50-70% of
your recipients into the
conversion zone

If we can’t consolidate email intelligence, how
are we going to deal with ”new” channels?

Build your profiles and get data
for segmentation

Data input Email
Transactions
from tracking
(on/offline)
customer behavior

70-90% accurate 50-90% reliable 99% trustworthy

94

How do you build profiles, and why
do it progressively?

My B2B profile First + last Name
My B2C
profile Email profile
Position? Mobile #
Influence? Male
39-45 yrs. Old
Married (wife)
Size of Kids (#, sex,
company age)
Budget for X Income (no)
Annual use of Y Assets
Bying process Property
When, how
CFO’s
Lifestyle
Soft data Preferences
Preferential Status of X
information

Basic
Demographics
Basic A press photo conceptualized by Affluent
demographics a German creative who spent too much neighbourhood
time in Berlin…. ?
(c) Michael Leander Nielsen, 2008 96

Understand thy list !

• Measure health of your list regularly
• Act on your findings – it is important
Measure Period Number of % of list total
Subscribers
Never Open All time 48,000 16.0%
Last 6 Months 168,000 56.0%
Never Click All time 96,000 32.0%
Last 6 Months 144,000 48.0%
Never Bought All time 48,000 16.0%
Last 6 Months 192,000 64.0%
Never Bought All time 96,000 32.0%
Online Last 6 Months 216,000 72.0%

Tighetening the data integration is an
ongoing process, but focus is needed

 What is a lead?
 What level of
qualification?
 Where in the funnel do
new leads go?
 What is the expected
incubation time?
 Will lead scoring add
value to the dialogue?

Direct marketing workshop Wazzap in Tallinn, Estonia

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Direct marketing workshop Wazzap in Tallinn, Estonia