DM 101: A Small Business Primer
Yesterday, Target Marketing hosted a webinar called "Direct Marketing on a Shoestring Budget." I was honored to be a speaker, along with Cyndie Shaffstall, of Spider Trainers.
Considering all the resources available for DM information, I was completely surprised when I learned that over 1,000 people registered. During the live event, we were deluged with questions and there wasn't enough time to answer them all, so I thought I'd dedicate this blog to trying to cover a few DM strategies that might make your marketing life a little easier.
There's not enough room on this page to cover everything I'd like to say, but based on the questions, here are my top five pieces of direct marketing advice:
1. Before You Begin Any Marketing Program, Decide Where You're Going
Start with your company's business objectives (Grow revenue? I certainly hope so!), and work backwards.
There are really two key marketing strategies to achieving this objective: Retain existing customers (i.e. retain existing sources of revenue), and add new customers. Duh. But retaining existing customers should include measurable marketing objectives like increasing average order size, increasing number of transactions per customer, and increasing frequency of purchases. Marketing to cold prospects might include metrics like increasing the number of qualified leads into the sales pipeline, or driving more traffic to your web store. Depending on your objective, different marketing strategies and tactics will be utilized.
2. Know Who Your Existing Customers Are
If you can't profile them by the data you collect, you can append data from a reliable third-party data provider—and many of them offer analytic services so you can get a good handle on your buyer profiles.
Another option is to think about your product/service and how you might market it differently if you knew your customers better. For example, if you knew your customers had toddlers, would that drive a different set of messages than, say, parents of teens? Do a survey and ask your customers to share key information with you. (An incentive to fill out a SHORT survey often works; make sure you only ask questions you can use the insights from in future marketing efforts.)
On the B-to-B side, do your customers tend to come from a handful of industries only? Then you have a better chance of selling to more customers in those industries than in a brand new industry. Knowledge is power, so it's difficult to plan and execute successful marketing efforts if you don't understand your customer base.
Don't forget about taking a deeper dive into your data to find your "best" customers. Chances are 20 percent of your base is driving 80 percent of your revenue. Better know who they are—and fast—so you can make plans to protect and incent them to stay loyal.
3. Clean Up Your Act Before You Try to Make More Friends
Since most customers will visit your website first, make sure it's optimized for site visitors ... and for smart phone users (yes, the future is NOW). On the B-to-B side, you better have your LinkedIn profile updated with a professional picture and solid bio, because, yes, people do judge a book by its cover.
4. Choose the Right Media Channels
This is probably the hardest one to get right. Do magazine ads work? Yes, if your audience reads a particular publication. Does cold prospecting work? No. End of statement. Does direct mail work? Yes, if you spend time identifying who your best customers are, profiling them, then overlaying that profile on a list to find look-alikes, and you combine a meaningful offer in an appropriate format. There are lots and lots of nuances in direct mail, and most folks get it wrong. So how do you make the right media decisions? If you know who your best customers are, find out where they congregate—that's where you want to have a presence.
In the B-to-B world, this can be made a little easier as business people get together at industry events, join industry associations, read industry publications, etc., etc. It's a little easier to figure out ways to get your message in front of them.
In the B-to-C world, you need to be much more analytical. Go back to the profile of your best customers. What do they have in common? In what context would your product/service appeal to them? Instead of trying to "interrupt" their behavior by placing an ad where they're not even thinking about your solution, try to place your ad in an appropriate context. For example, if you're a nonprofit trying to reach high net-worth prospects for charitable giving, use your PR skills to try and get a story placed about your efforts. Then, purchase banner ads on the publication's site so they run next to the article about you—or place an ad within their publication when the article runs. Use Google Analytics and AdWords to understand the most popular search terms for products/services like yours. See what your competitors are doing and figure out how you can differentiate yourself with your message.
5. Format Matters
I'm often asked if postcards work. Or is a #10 package better than a self mailer. And what about Three-Dimensional packages—are they worth it? The answer is yes, yes and yes ... but here are a few things to consider:
- Postcards work best when you have a single, simple message to convey. Keep it short, sharp and to the point.
- Self-mailers work better if you need a little more real estate to tell your story. Plus, they can be quite "promotional" in nature, so they're not taken as serious communication.
- Envelope packages work best if you have a more complex message. A letter (with subheads, please, as we're all scanners of content), order form, brochure and business reply envelope (yes, they still work like a charm), can all work if your audience is older. (Here's a hint: Not everybody wants to go to your web site, fill out a form and give you a credit card number if they can check a box on your form, add a check and mail it back to you on your dime.)
- 3D packages can work like gangbusters if the item inside is engaging and makes sense as it relates to your brand/message. Inexpensive tchotchkes don't usually work very well—they don't garner attention and they don't make your brand look smart.
Net-net, marketing is a skill. And, considering you will invest to get financial gain for your business, you really shouldn't try to do it without professional help.
A blog that challenges B-to-B marketers to learn, share, question, and focus on getting it right—the first time. Carolyn Goodman is President/Creative Director of Goodman Marketing Partners. An award-winning creative director, writer and in-demand speaker, Carolyn has spent her 30-year career helping both B-to-B and B-to-C clients cut through business challenges in order to deliver strategically sound, creatively brilliant marketing solutions that deliver on program objectives. To keep her mind sharp, Carolyn can be found most evenings in the boxing ring, practicing various combinations. You can find her at the Goodman Marketing website, on LinkedIn, or on Twitter @CarolynGoodman.