Customer Relationship Marketing
Ernan Roman Direct Marketing guarantees double-digit response rates using consensual opt-in customer relationship marketing solutions, customer relationship management and creating integrated marketing solutions
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Issue No. 5   SUBSCRIBE » CONTACT US »
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IN THIS ISSUE...
Spacer Are You Leveraging all the Elements
of the Multichannel Mix?


Integrating Your Media to Maximize
Effectiveness


Case Study: The Phoenician Utilizes
Integrated Multichannel Marketing


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ARE YOU LEVERAGING ALL THE ELEMENTS
OF THE MULTICHANNEL MIX?
 


Integrated Direct Marketing (IDM®) integrates and sequences media and message through an understanding of the customer’s time dimension. In other words, where is the customer within his or her life cycle?

The Customer Life Cycle is made up of three stages:

In the presale period, customers are researching their needs and separating the wheat from the chaff. Marketers respond with integrated media and sales strategies to surround the customer with information and informed choices.
The sale stage brings the opportunity for “thank you” marketing, which is always productive but rarely done. At one large technology company, branch managers were asked to place calls to mid-market customers who had just made a significant purchase. The customers were dumbfounded. They never knew this person even existed – and they were tickled to know their business was appreciated.
The growth and retention phase is most often disregarded. And yet it provides significant opportunity to engage the customer in interactive ongoing communications. The opportunities include consultative needs assessment, problem identification and resolution, increased market penetration and repeat sales.

Based on this life cycle, different messages and different media are deployed in accordance with customer opt-in preferences to provide them with the information they require to move to the next stage, and to create an interactive dialogue where both parties listen and learn. This enables us to better meet customers’ ongoing and future needs.

The IDM multichannel mix includes a palette of at least seven brilliant colors:

PR
Direct response print advertising
Internet
E-mail
Direct mail
Inbound and outbound telecontact
Field sales channels.

If you’re not using the full media mix palette, your marketing plan is going to look more like a paint-by-numbers using only one color than the brilliant Van Gogh that it should.

®IDM is a registered trademark of Ernan Roman Direct Marketing

INTEGRATING YOUR MEDIA TO MAXIMIZE EFFECTIVENESS

Using multiple vehicles with an integrated direct marketing approach surrounds customers with a powerful mix of stimuli and choices to create the most compelling, competitively differentiating customer experience.

The following media mix sequencing is based on the analysis of hundreds of marketing campaigns over many industries. It provides a proven guideline for the precision timing of your media deployment.

  1. Begin with Publicity/PR to generate the umbrella of awareness. Print advertising should begin its three insertion flight one week after PR appears – with one exception: If you can, begin print advertising in the issue carrying the PR story.

  2. Print advertising directs the awareness created by PR and channels it into response. Ideally, we entice customers with print and drive them to respond to the print ad or to direct mail and/or e-mail, which is deployed one week after the initial print advertising insertion.

  3. Direct mail/e-mail provides more detailed information than the print ad. Therefore, responses generated by these media will be better qualified.

  4. Outbound telecontact is deployed with the principle of Response Compression timing in mind. Testing has proven that customer-focused outbound is most effective when reaching the decision maker within 24 to 72 hours after mail or e-mail receipt.

  5. Web presence begins with publicity and remains throughout.

 
 
Case Study: The Phoenician Utilizes IDM

The Phoenician is one of the truly over-the-top resorts in the United States. They were primarily using image advertising in a few media vehicles when management decided to test the Integrated Direct Marketing multichannel methodology against their traditional mix of image advertising.

Debbie Kellam, former Marketing Manager for the Phoenician, explained:

“We conducted Voice of the Customer Relationship Research and found that guests would welcome communications directly from the Phoenician. Their preference was direct mail. We tested the IDM combination of direct mail and well-trained and scripted proactive reservation agents handling inbound telecontact versus our television, newspaper and magazine advertising. We adhered to IDM’s strict process of metrics to bring this to the bottom line and understand which vehicles generated what revenue. The question we were looking to answer was, can we drive qualified response in conjunction with our traditional image-advertising approach? Test results were eye-opening.”

The Phoenician traditionally allocated its marketing budget as follows:

Television = 36%
Newspaper = 32%
Magazine = 26%
Direct mail = 6%

The budget was redeployed for the IDM test as follows:

Television = 32%
Newspaper = 31%
Magazine = 21%
Direct mail plus inbound = 15%


Within this test, there were two bottom line metrics: the conversion rate and revenue generated.

The IDM multichannel combination of integrated direct mail and inbound telecontact resulted in a 21% conversion versus the baseline of 13% – a 62% increase over traditional conversion!

The rest of the results:

Television generated 5% of revenue (with 32% of the budget)
Newspaper generated 21% of revenue (with 31% of budget)
Magazine generated 10% of revenue with 21% of budget)
The IDM combination of direct mail and inbound generated 64% of revenue (with 15% of budget)


The lesson for the Phoenician was that image advertising and IDM could comfortably co-exist. They also learned that the precision synchronization of multiple media brought two important benefits: a way of extending the Phoenician experience into the homes of valued guests via very targeted and personalized vehicles, and incremental revenue at a very attractive expense to revenue ratio. For additional information regarding this case study and others which are contained in Opt-In Marketing: Increase Sales Exponentially with Consensual Marketing click here.

 
       
   
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LETTER FROM ERNAN

I recently spoke at a national conference about deploying multichannels per the opt-in preferences of customers and prospects. After my presentation, a young man, looking somewhat vexed, approached me. “I’ve followed your process – even did Voice of Customer Research – and I’m not getting double-digit response rates!” he exclaimed. Intrigued, I invited him to walk with me to my next presentation.

As we talked, I learned that his company’s direct marketing response rates were declining sharply. While searching for ways to increase response, my new friend had stumbled across my book, Opt-In Marketing: Increase Sales Exponentially with Consensual Marketing.

He told me how he followed the prescribed process, created a plan and presented it to senior management to get buy-in. He studied their customer base, and conducted Voice of Customer Research. He used that research to redesign many of their direct mail pieces. He began testing various offers among different customer segments. While all of this effort had slowed the drop in response, he hadn’t broken the double-digit barrier yet.

Baffled, he looked to me for advice. I had only one question: “What are you doing besides direct mail?”

It turns out he was relying only on direct mail – putting all of his eggs in one basket. After briefing him on the importance of an integrated multichannel mix, I wished him good luck and asked that he keep me up to date on his progress.

He is currently retooling his marketing plan to include multichannels. It occurred to me that sometimes we as direct marketers get myopic in our quest for the perfect mailer. So this month’s newsletter focuses on the optimal media mix and how to use that mix for maximum effectiveness.

Happy reading, and don’t forget to keep sending me your thoughts, questions and suggestions, at ernan@erdm.com.

Best wishes,



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NEXT MONTH
We’ll be discussing e-mail and how best to integrate it into the multichannel mix. Email us us your story about how you’ve used e-mail as part of your marketing mix to achieve stellar results, and we’ll include it in our next newsletter!
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ADDITIONAL RESOURCES
To learn more, go to Case Studies / Tips for You. Also go to Our Books to review Opt-In Marketing: Increase Sales Exponentially with Consensual Marketing.

Contact Us for a complimentary consultation to discuss your needs and how the Consensual Marketing / Opt-In Process (CMO) may satisfy them.
 

Click here for additional customer relationship management solutions case studies.

We wish you the best of luck in using the Voice-of-Customer-driven 3-Step Marketing Process to achieve double-digit response.

    To read previous newsletters, click here.
    For additional case studies, click here.

     
Ernan Roman Direct Marketing | 3 Melrose Lane | Douglas Manor, NY 11363 | Phone: 718.225.4151 | Fax: 718.225.4889
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