I’ve received a lot of comments both online and offline about my eulogizing traditional marketing. The most common argument for continuing radio and television is that it’s affordable (in their market) and the board likes to see it. And when I speak in public about the eventual death of old marketing people get the most protective over this one – direct mail. Specifically “targeted” direct mail.
Don’t get me wrong. I used to do a lot of direct mail. We bought an MCIF just so we could household our members and track our results. But, what always bothered me when calculating my ROI math for the CFO was this:
Unless I had a coupon attached or some way of tracking that the “new” business did in fact come from the post card I just sent, how can I take credit for it? How did we know it wasn’t the great rate? Our stellar reputation? Crazy member loyalty? Or word-of-mouth that brought us all those loans? What if we didn’t mail out those post cards? Would no one come?
The USPS expects to be $7 billion in the red by year-end. They are closing offices, reducing delivery and increasing postal rates to stay afloat. The decline in mail volume as people rely more on e-mail, plus a dip in advertising mail because of the recession are the main causes. Some expect the postage stamp will quickly hit the $1.00 mark. That changes your ROI math dramatically.
A lot of marketing feels like stalking. Whenever you find yourself saying “We need to go after (insert product or type of member) you are bound to end up doing some things that feel intrusive. According to Psychiatric Times stalking is defined as:
repeated and persistent unwanted communications….such as telephone calls, letters, e-mail, and placing notices in the media.
Sounds a lot like traditional marketing, doesn’t it.
Key words. Repeated and unwanted.
Listening to a radio ad that says “That number again, 1-800…”
How about that television carny screaming at you “But wait! There’s more….”
And the piece of mail that is marked “URGENT” when in fact, it’s not.
Repeated and unwanted. Generation Y is definitely going to look at you like you’re a crazy bunny boiling lunatic if the only way you try to build a relationship with them is by showing up on their doorstep, in their car, on on their TV. And don’t even THINK about invading their cell phone space. That would be the equivalent of dumping acid on the Volvo.
THIS JUST IN (12/17.09): Thank you to my dear friend Tom McWilliams for sending me the link to this story – USA Today announced that Pepsi will not advertise during the Super Bowl this year. Nicole Bradley, marketing spokesperson for Pepsi said:
“In 2010 each of our beverage brands has a strategy and marketing platform that will be less about a singular event and more about a movement.”
Hmmmmm…what an interesting choice of words.
Thanks to the folks at CUSwag for sending me this picture as well. Simply titled “The joy of not being sold anything.”
12 comments
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December 16, 2009 at 8:01 am
Elliott Kashner
Personally, I’m a fan of “special offers.”
PS. Is that a picture from Single White Female?
December 16, 2009 at 8:42 am
Denise Wymore
Hey Elliott!
I like “special offers” too but not when they clog my mailbox. Coupons drive me nuts too because
a. you have to keep them
b. you have to remember to use them
c. they almost always have restrictions
d. the restrictions are printed on the back in a 2 point font I can’t read
e. so consequently I usually am trying to use them when I can’t.
Macy’s is the biggest offender of this. When you get your special-offer-bonus-coupon in the mail this year – I’m pretty sure you can use it to buy socks. On a Tuesday. Between noon and 2:00. And only one pair.
My favorite “special offers” are the ones that make me FEEL special. Zappos.com provides a complimentary upgrade to overnight shipping for all repeat business. They don’t advertise that – they just do it. You’re delighted. You buy more and tell your friends.
I’ve always thought credit unions could learn from this “over delivering” example.
Say I’ve been a member for 20 years. I’ve had several loans, all paid on time. My checking account is active. I’m a good member. Then I “oops” overdraw my account. First time in 20 years. Why not just transfer the money from my savings and waive the fee this once. And let me know you did it because of my loyalty.
Now THAT would be a SPECIAL offer.
PS – That scary picture is from Fatal Attraction with Glenn Close and Michael Douglas.
December 16, 2009 at 10:35 am
James Robert Lay
I think the thing that irks me the most is that this non-sense will continue (even though it may not be working) because “the board likes to see it”.
OH COME ON…
That is almost as bad as: We will continue to waste marketing dollars on channels that are not effective and provide little or no measurable return is because “that’s the way we have always done it”.
Followed closely by: We will continue to waste marketing dollars on channels that are not effective and provide little or no measurable return is because “that’s what everyone else is doing”.
As a marketing leader, you should take charge of your marketing strategy, educate the BOD on what really is happening “out there”, lead change and don’t be afraid to do things different and make mistakes all while learning and getting better along the way.
December 16, 2009 at 2:33 pm
Mikal
I have enjoyed reading your blog posts. The R.I.P. you are hitting on is lazy marketing.
Marketing success was found when there was 4 channels on tv and yellow pages were the main source of information. Lazy marketers hit their target audiences by default.
Now in the year 2000, their is no default. Our potential members go, view and listen to what they want. Online or off-line there is no more a channel where you can send out a water-down all appeasing message and have success.
The tracking online brings your marketing campaigns is amazing. But, all the mediums listed in the R.I.P. series still have power if aligned with a proper target audience… except for the con-artist yellowpages.
Just my thoughts… Mikal
December 16, 2009 at 2:49 pm
Denise Wymore
Mikal,
I love your comments and agree that if you have built loyalty in a particular target audience then they will watch your commercials, tolerate your radio and possibly open your direct mail.
But by just “going after” a particular group does not mean they want or will respond to your marketing. Does that make sense?
I agree – targeted marketing is hard – which is why many stick to the “lazy” approach of tossing the net as wide as humanly possible and seeing what fish they can drag in.
Thanks for reading and for commenting. This is good stuff and needs to be discussed.
December 16, 2009 at 6:13 pm
Kelley Parks
Denise
I’ve loved this series. But I’ll admit this one is the saddest.
I keep a chest in my office filled with samples of unique pieces that I have saved from landfills. There is just something about folding paper cleverly like origami that evelopes the creative process.
Could you make your next series a 12 step program for addicted marketers? Maybe we could have an AA Style Meeting? Will there be an intervention? Group hugs? Are you working on the vaccine? How about a patch?
December 17, 2009 at 6:56 am
Tim
I agree that direct mail can be boring and unwanted. There is no longer a want or need for the “spray and pray” methods of old. However, if you target market to the correct members using direct mail you can still be very succesful. I like to target current members for my marketing promotions since the offer should be relevant to them already. Since they already have other services with the CU, why not get another?
Now after awhile these members will hopefully have several services with you. If you really did have GREAT RATES and GREAT SERVICE as you have been saying all along, then these members will start telling everyone else how great you are. Eventually that word of mouth advertising will bring in new members, which directly came from the loyalty you built using direct mail.
Also, I don’t believe that direct mail is the only channel you should be using to market your services. E-mail marketing, text messaging, and custom ads for your statements or e-statements, for example, also need to be used to market in multiple channels to be truly effective.
I think you have some good points, but Direct Mail is by no means dead or dying anytime soon. It is still the easiest way to put your message in front of people.
December 17, 2009 at 7:16 am
Denise Wymore
Tim,
Thanks so much for your comment. You said:
“I like to target current members for my marketing promotions since the offer should be relevant to them already. Since they already have other services with the CU, why not get another?”
Isn’t this a form of spray and pray? One of our challenges – our products are relevant to everyone at some time in their life. Who won’t need a loan for a car or a home eventually? If you’re a consumer in America, you need a checking account. Period. And putting your money in a bank or credit union instead of under your mattress (where it earns about the same interest today) has always been a wise decision.
I don’t believe you build loyalty from direct mail – you build it from your moments of truth. Banking is an errand. I’m rarely wowed while I’m running my errands. But if a credit union takes the time to care about each interaction, gets to know me, and respects my loyalty – I’m likely to pay attention to your offers. Not the other way around in my opinion.
You’re also correct in saying the direct mail is easy. I think that’s why many marketers still cling to it. Managing and measuring moments of truth is much harder.
December 17, 2009 at 9:45 am
Tim
Denise,
Target marketing is not spray and pray since you look into your current memebrship and only send the offer for the product to the members most likely to use it. Is this system still flawed, yes, but what can you do? Only some of your membership will use e-mail marketing and/or text messaging. These members are great since they opt in to hear about your offers and can select only the products that they want to hear offers about.
I don’t think that you build loyalty from direct mail, but if your offer is relevant AND they come in AND sign up for the new product AND you then give great service…THEN you finally build loyalty. Direct mail is the start….the staff is the finish and what will build the loyalty.
December 17, 2009 at 7:35 am
Denise Wymore
@Kelley
I love direct mail too – for its creativity outlet. I STILL come up with what I think would be kick-ass direct mail concepts in my head. If only………people cared.
Tis’ the season. My mailbox is jam packed each day with catalogs and coupons and special offers. And to Tim’s point above – I have done business with every single one of these companies that stuffed my mailbox.
Here are just some of the things I received this week:
Napa Style – your products look good on film, but twice I’ve ordered gifts for friends that sucked. First one was a cute mouse holding a leaf that was supposed to hold the accompanying gourmet salt. It was packed with a warning label that the finish on the holder was basically toxic and should not come in contact with food stuffs. The second gift I bought arrived as “bag of broken glass” Sorry Napa Style – in the recycle bin.
Macy’s – Thanks for the coupons – again – I have yet to pass your rules so I can actually use one. Toss.
Chicos catalog. Love you. When I go to the NW Portland store they know my name. They are not pushy – they have incredible sales and their coupons ALWAYS work and you don’t even have to have it with you – they have them in their computer. Brilliant. Oh, and I wear a size 2 there. Again – brilliant. This one goes on the coffee table for perusing.
Credit Union Statement – filed. Unopened. I can get everything I need online now. Why don’t I stop the statements? It would require me calling them (when they are open), listening to their menu of options, selecting “O” of OMG just get me a person already – only to be put in a hold queue where I have to listen to your lame marketing messages…..
You get the idea now why I HATE direct mail. As marketers they are our babies – and it’s hard to hear someone say that baby is ugly and is being recycled and ignored. But it’s true.
December 17, 2009 at 3:57 pm
James Robert Lay
My wife is my direct mail spam filter. When i get home, she has already gone through the crap for me so all that I get is the mail that i need. Trying to work on her to learn how to “delete” the bills as she seams to let those still pass through to my desk for some reason.
One cool thing I did that caught my eye on a direct mail piece she saved though (coupon) was a Bath and Body Works piece that had a “Become a fan on Facebook” with Facebook icon.
If credit unions are still going to use direct mail, please at least cross reference your social network to let your members know you are there.
January 15, 2010 at 12:23 pm
Stan Cowan
Denise – I have really enjoyed Parts 1 thru 4!!! I’ve been holding my breath, however, waiting for Part 5 – Billboard advertising. Without giving away my own thoughts, I’d LOVE to hear your perspective!
That said – I really AM a firm believer of a consistent “branded” message no matter WHAT the venue utilized.
Looking forward to Part V…