5 Tips for Faster, More Confident, Direct Marketing Budget Decisions
As we enter the critical make-or-break fourth quarter, and you begin your 2014 direct marketing budget plans, you will likely be faced with many marketing decisions. Those decisions are usually needed quickly. But often they're not made quickly. Whether it's information overload from so many options, analysis paralysis or managers who are afraid to make a decision, today we explore five ways to make marketing decisions quicker and more confidently.
A mere generation ago, direct marketing decisions were limited to direct mail customer file or rented lists, space ads in magazines, package inserts, direct response broadcast, and a few other media options.
Fast forward to now, and the direct marketing decision landscape has grown exponentially with online and cross-promotional media options. Every season reveals new, unexplored online opportunities. Some are fads. Some turn out to have real value.
So for your direct marketing budget planning, here are five recommendations of how to evaluate opportunities and make decisions more quickly and confidently.
1. Cost per Response
An important metric for most direct marketers is the marketing cost per response (per lead, inquiry, sale—whatever your situation). This core metric may be your most significant contributor to your decisions.
2. Allocation of Unknown Response Sources
If you're in a situation where you have a significant number of responses for which you can't pinpoint a specific marketing source, consider a weighted-average allocation of those responses across marketing activities. With some imagination, you should be able to calculate this on your own. (Let me know if you'd like an expansion of this concept, and perhaps we'll do so in a future blog post.)
3. Summarize Results in a Matrix
Placing your data in a spreadsheet will put the numbers in front of you so you can see all your activity in one place. You may want the data by media type on separate spreadsheet tabs so you can see more granular data.
Reinventing Direct is for the direct marketer seeking guidance in the evolving world of online marketing. Gary Hennerberg is a mind code marketing strategist, based on the template from his new book, "Crack the Customer Mind Code." He is recognized as a leading direct marketing consultant and copywriter. He weaves in how to identify a unique selling proposition to position, or reposition, products and services using online and offline marketing approaches, and copywriting sales techniques. He is sought-after for his integration of direct mail, catalogs, email marketing, websites, content marketing, search marketing, retargeting and more. His identification of USPs and copywriting for clients has resulted in sales increases of 15 percent, 35 percent, and even as high as 60 percent. Today he integrates both online and offline media strategies, and proven copywriting techniques, to get clients results. Email him or follow Gary on LinkedIn. Co-authoring this blog is Perry Alexander of ACM Initiatives. Follow Perry on LinkedIn.