Archive for the ‘Useful Articles’ Category

Direct Mail – Part 4: The Offer

Tuesday, May 19th, 2009

In a lot of ways, the offer is the most important element of a direct mail marketing campaign.  It’s the ‘deal breaker’ – it determines whether your prospect responds immediately or whether they discard your message without further thought.  Your offer needs to be carefully thought out and it needs to resonate with the target audience.

Some of the points that you might consider in framing your offer:

  • Free gifts – ‘free’ remains one of the most powerful words in the marketer’s vocabulary
  • Free information – consider offering a free white paper, e-book or other free advice as these are well-received – much like editorial content in newspapers is better received by readers than straight advertising.
  • Exclusivity – this offer is only available to you exclusively, which makes the prospect feel special and creates a justification to purchase.
  • Short time only or inclusion of a similar time-based call-to-action – this offer is only available for a limited time, which creates urgency to act.
  • Buy one, get one free – it is proven that this is a more effective offer than other common offers, including ‘50% off’ and ‘two for the price of one’ (which is the same offer, but worded differently).

Direct Mail – Part 3: Objectives, Strategies and Tactics

Tuesday, May 19th, 2009

Next step is to determine your objectives, strategies and tactics for your direct marketing campaign.

Objectives

This is your goal – what you want to achieve by when and by how much.  Use the following SMART formula to determine your objective:

  • S is for Specific: the objective needs to be explicit, not furry around the edges
  • M is for Measurable: you need to be able to quantify your campaign – eg.  a 10% increase in sales
  • A is for Attainable: you need to be able to achieve the objective, otherwise it’s not an objective
  • R is for Realistic:  it can’t be an outlandish target – it needs to be in the realms of possibility, challenging, but not unattainable.
  • T is for Timely: it needs to incorporate a time-based measure when your campaign comes to an end.

An example of an appropriate objective might be – to increase sales in Product A in the SME market by 10% by 30 June 2009

Strategy

Your strategy is a succint overview of how you intend to achieve the objective.  Strategies could include:

  • Acquisition of new customers
  • Retention of existing customers
  • Growth of business with existing customers
  • Winning back lapsed customers

A strategy could be: To increase sales in Product A in the SME market by 10% by 30 June 2009 (our objective) through the acquistion of new customers and growth of business with existing customers.

Tactics

Tactics are the things that you do execute your strategy in order to meet your objective.  Each tactic should be quantified individually to determine their overall effectiveness.

In the ‘increase sales’ example above, some possible tactics are:

  • A direct mail campaign to all existing customers on the company database offering a 2 for 1 deal
  • An email marketing campaign to existing customers offering a 20% discount on a product

Direct Mail – Part 2: Target Audience Analysis

Tuesday, May 19th, 2009

After morning tea, we talked about the Target Audience Evaluation, an integral part of the direct mail marketing process.

The important message here is: it’s not about you or your product, it’s about solving your prospects’ problems.  It’s important to ‘walk in their shoes’ and ask the question:  ‘What’s In It For Me’ (WIIFM).  As a consumer, ask yourself: why would I take time out in my busy day to respond to a marketing message provided by a business that I have not heard about before?  This is the question that your prospects are asking themselves when they make the split second decision to act on your communication or chuck it in the wastepaper bin.

Don’t fall into the trap of producing marketing copy or creatives without considering the target audience, because it’s likely that your campaign will fail.  Do not pay lip service to this step or your money will be wasted.

First, work out the different segments of your target audience and determine how they will be impacted upon by your direct mailing campaign:

  • Different demographic groups of suspects and prospects – people with no existing relationship with your business
  • Different demographic groups of existing customers, clients and advocates

When considering the target audience, ask yourself these questions:

  • Who are we talking to?
  • Where do they live?
  • Where do they work?
  • Where do they shop, socialise?
  • What jobs do they do?
  • How old are they?
  • What are their family circumstances? Married? Kids?
  • What is their income?
  • What do they spend money on?  How much per month?
  • How do they spend their spare time?
  • What is their psychographic orientation?  Influencer?  Decision maker?  Team worker?
  • What are their attitudes to life?
  • Risk takers?  Conservative?  Ambitious?  In search of stability?
  • What media do they consume?

These questions will help you to consider the orientation of your target audience and assist you in formulating your marketing message.

The Sweet Success of Direct Mail – Part 1

Tuesday, May 19th, 2009

Today I am attending Australia Post’s Direct Mail seminar, delivered by David Barratt at Adelaide’s Old Lion Hotel.  I thought I would distil the key points into this blog post.

Direct mail is a fantastic option for small business and netpreneurs, because it is relatively cheap and,if used correctly, can be highly targeted.  With marketing budgets being rationalised as a result of the global financial crisis, direct marketing is one strategy that can work really well during tough economic times.

I have dabbled in direct marketing with my various business ventures, but not in any coordinated fashion and, accordingly, the results have been mixed.  Hence, my attendance at the seminar – to learn how to get more out of my future direct marketing efforts.

Some stats about direct marketing from the collateral provided by Australia Post:

  • 10% of consumers aren’t interested in receiving any type of marketing – direct marketing allows you to advertise directly to the 90% who are
  • 1% of consumers only want to hear from advertisers once a year
  • 70% of consumers don’t mind who sends them information, as long as it’s relevant
  • 62% of consumers open and read direct mail
  • 67% of consumers preferred to receive advertising and promo messages by direct mail or catalogues
  • The vast majority of consumers prefer to receive direct mail messages rather than email
  • Believe it or not, 66% of consumers want to be contacted at least monthly – this stat surprised me.

All of these stats suggest that direct mail is a good way of getting your marketing message out there.  People do read direct mail if they perceive it to be of value to them.  The challenge is get the marketing right.

So what are the four critical success factors for effective direct mail marketing?  Here they are:

  • Timing (that which you can control) – when your mail is received.  For example, there are optimum times for sending catalogues for Christmas shopping.
  • Offer – The offer is the ‘inertia breaker’ and provides the impetus for the potential customer to take action/respond.  It needs to achieve what they call ‘cut through’ in the advertising industry to compel the recipient to act.
  • Creative – the ‘message’ and the look and feel of the physical item, whether it be a flyer, letter or merchandise.
  • Database/ Target audience – David’s message in the intro to the seminar was to ‘build your database, build your database, build your database’.  The other message was to segment your database and market to individuals where possible.  For example, if a customer prefers fiction books, then that customer should receive information about new fiction books, rather than non-fiction books.

David went on to speak about the Ladder of Loyalty and Pareto’s 80-20 rule.  The ladder of loyalty consists of five levels of a consumer’s orientation towards your business – the levels are: suspects, prospects, customers, clients and advocates.  Clearly, businesses want to progress their customers up the ladder of loyalty to become clients and advocates (or what Seth Godin calls ’sneezers’).  Pareto’s law suggests that 80% of business activity occurs with 20% of customers.  It’s important that businesses know exactly who those 20% are and all marketing efforts should be focused on repeat business with (and referred business from) these clients and advocates.

So, we’ve established that there is some value in undertaking direct marketing.  What’s the next step? The next step is to create a direct marketing plan, which should contain the following elements:

  • Executive Summary – what, how, when, why, where
  • SWOT analysis – strengths, weaknesses, opportunities and threats of the campaign – this serves to validate (or invalidate) your campaign
  • Market research and analysis – primary (qualitative and quantitative research) and secondary sources (ABS data, online databases)
  • Target audience
  • Objectives, strategies and tactics
  • Campaign measurement
  • Timelines
  • Evaluation

I suspect that this step gets glossed over by most small businesses, but it’s important to go through the process to validate your campaign.

Time for morning tea – more later…

Twitter: friend or foe?

Monday, March 30th, 2009

My colleague Geoff Jennings posted this video on his blog last week and I thought it was appropriate for the Netpreneur audience.  It reminds us about some of the underlying weaknesses of Twitter (and other social networking websites). Whilst Twitter might be the latest and greatest thing on the web, there are also negative elements of this social networking tool which suggest that it could be a short-term fad – specifically that it is addictive, that it creates ‘artificial’ interactions between people, and that it can be a huge waste of time if not employed wisely!  Indeed, micro-blogging will never remove the need for good old fashioned face-to-face, human contact. That’s not to say that Twitter won’t be useful as a means of communication in your business….give it a try.

Assorted Links and Stuff III

Thursday, February 12th, 2009

A collection of interesting articles, links and helpful stuff that I have come across recently:

Assorted Links and Stuff 2

Tuesday, February 3rd, 2009

A collection of great links and tools that I have come across over the past few weeks:

12 tips for working effectively from home

Tuesday, January 20th, 2009

work-from-home

I work from home.  Most people I speak to say that they would find it impossible to work from home because there would be ‘too many disctractions’.  For example, the television, refrigerator, the dog, wife, life…

It certainly takes discipline to work effectively from home.  I am certainly no paragon of discipline (I get distracted with the best of them), but I have employed a couple of strategies to ensure that I get things done.  Hope you find them helpful:

1. Set aside your work area.  Set up an office – preferably detached from your home - and use it only for work.  Your office is your place of work and it should be treated as such.  Adorn the walls with your degrees, qualifications and business registration certificates.  Set up photos of your loved ones – because they should not be able to interrupt your work sanctuary during work hours and you will miss them!  This is your place of work – do work here, do life elsewhere.  Avoid the temptation to take the laptop down into the living room to work in front of the cricket during the day or to catch up on work ‘after normal business hours’.

2. Dress like you are attending a regular workplace.  I have a confession to make.  I regularly start work without having had a shower.  Yep, I walk the dog and I head straight to the computer, without having had breakfast.  Bad karma.  It’s better if you prepare yourself each day as if you were ‘going to work’.  That is, get up at a reasonable hour, take dog for walk, shower, put make up on (?), do hair (?), eat breakfast, kiss the wife/husband, and head to the office.  It’s all about establishing a routine and sticking to it.  If you have a good routine, you will find that your productivity will increase substantially.  Of course, I wouldn’t advocate dressing in a suit and tie – jeans will suffice!

3. When in your work area, work!  Now that you have set up your office, make sure that every minute spent there is channelled towards your work objectives, not personal stuff.  Produce a daily to do list and make sure that you achieve it in the allocated time.  Don’t leave the work area until everything is done.  You need to walk out of that room at the end of the day having achieved something.

4. Make sure others respect your work area.  This is a hard one.  Tell your family and friends that your work area is your ‘office’ and it is to be treated as such.  They wouldn’t come barging in to your office if you were working for another employer – it should be the same deal in your home office.  Visitors to the house also need to understand that you are working and that you shouldn’t be interrupted.  A little bit of R-E-S-P-E-C-T is needed from others to work effectively in a home environment.  By the same token, you need to respect the fact that your home is a home too.  Don’t let your work impact unduly upon the lives of your partner and children.

5. Take breaks.  When working at home, there is a temptation to just work straight through without breaks – no morning tea, no lunch break.  This is a mistake.  It’s important to take time out during the day to clear the mind – sit down and eat some lunch, go for a walk, read the paper, play with the dog, take your mind off your work for a while.  In short, do what you would do if you were working for another employer (except, of course, play with the dog).

6. Separate your home and office utilities.  If possible, get yourself a separate business phone line.  Don’t answer your home phone during work hours and don’t answer your business phone outside of work hours.  Consider also getting a separate computer and broadband connection for home and office use.  It might be expensive to have two computers, but it will allow you to separate your two online lives – personal email, web favourites, files etc on the home computer; business stuff on the business computer.  This will also ensure that you never have to fight for the computer when trying to work – ‘honey, can I use the internet for a minute…’

7. Network and socialise with real people.  Working from home can be very isolating.  To maintain your contacts, and retain your sanity, it’s important to keep interacting with people – and not just via online forums.  Attend events, conferences, breakfasts, networking sessions, business lunches, drink functions, etc.  If you don’t get out and network with others, then you could ‘lose your touch’ with people and even become a recluse!   Many people who shun working from home do so because of the lack of daily interaction with other people.  It’s important that you fill this void by seeking out other opportunities to interact.

8. Network with others online.  It’s also important to network with those in your industry via the web.  Twitter is a great tool for this because it provides a mix of work and social messaging.  I have read elsewhere that Twitter is like ‘hanging around the water cooler’ at work and is an excellent tool for shooting the breeze.  Beware though – Twitter is addictive and time consuming!  Half your day can suddenly disappear as a result of tweeting and responding to followers.  Other tools that you should use include web-based online forums, Facebook (mainly for social interaction), LinkedIn (professional interaction), Ning, email, voice over IP and instant messaging (I use Skype for the last two).

9. Join the local business enterprise centre or industry group.  Most areas of Australia have federally-funded business enterprise centres, chambers of commerce or business councils.  These groups are often pretty cheap to join and they offer some great benefits and networking opportunities for small businesses.  At the very least, most of these groups have a website and they will list your website URL as part of the membership package – this is good for your SEO.

10. Schedule holidays.  One good thing about working for yourself is the ability to schedule holidays.  We schedule our family holidays at the start of the year.  Not only is it great for securing excellent travel deals well in advance, but it’s also good for your morale and self-motivation, giving you a milestone to work towards.  When you finally do go on leave, try and resist the temptation to take the laptop.  If it’s simply not feasible to leave the laptop behind, then be disciplined on your holiday and only work during designated periods to ensure that you spend the majority of the time in recreational pursuits.  I am sure that your wife/husband will remind you of this requirement anyway…

11. Take time off when you need to.  You wouldn’t work for yourself if it didn’t provide some perks, would you?  One of the perks is the ability to be  flexible with your schedule.  If you need to take time off, then do it.  If you need to work at 2am on Sunday morning, then do it.  Again, it’s important that you are disciplined and catch up on work in your ‘own time’ if necessary.  And you also need to be disciplined to ensure that you don’t work 24 hours a day – some netpreneurs are so caught up in their little enterprises that their work becomes all-pervasive and this can be very dangerous for home life.  Of course, some netpreneurs only need to work a couple of hours a day…I’m still striving to achieve that.

12.  Claim your home office expenses.  Make sure that you speak to your accountant about claiming your home office expenses in your tax return(s).  If you run a business from home, then there are a host of expenses that are deductible: electricity, gas, water, heating, cleaning bills, telephone, fax, ISP, office furniture, computer costs, electrical equipment used in the office, etc.

Useful Article: Plenty of Fish founder works one hour a day

Saturday, January 17th, 2009

This article is about successful netpreneur, Markus Frind, who founded the online dating service Plenty of Fish.  It goes to show what is possible when you settle on a business model that works.

http://www.inc.com/magazine/20090101/and-the-money-comes-rolling-in.html

Useful Articles: Making Money on YouTube

Friday, January 2nd, 2009

youtube1YouTube has a new partner program that enables video content producers to share advertising revenue. There are many small-time video broadcasters that are already making a stack of money via the program – some upwards of $100,000 per year.

This article from the New York Times is worth a read.