Archive for Marketing

Profiling improves return on investment

Sunday, June 7th, 2009
Would you expect someone with an £18k income to buy a £50k car?  Probably not!

So why market inappropriate products to your customers?

Profile your customers to find out what they like, improve their experience and increase your ROI.

Data profiling involves some very sophisticated maths …. at the first mention of ‘regression analysis’ most eyes glaze over.  But at its heart it applies the fundamental principle that similar people buy similar products.

The idea is to identify the type of people most likely to buy your product – by seeing who has bought it in the past and then purchasing new data with the same characteristics.

In the ‘early days’ the basic technique might be applied through mailing to neighbours of current customers on the, now perhaps old fashioned, assumption that similar people live in similar streets.

Widespread use of the postcode helped geodemographic profiling develop along with the appearance of ACORN (A Classification Of Residential Neighbourhoods). Designed as a tool for government planning, it quickly became one of the first of many computer systems to divide the country up into different groups, based on census information.

Soon bright boffins developed ways of profiling individuals, not just households. A mass of data has subsequently been added to the geodemographic foundation and is relatively easy to access.

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The real power of direct mail

Sunday, June 7th, 2009

There are some encouraging research findings regarding the use of properly personalised marketing offers which has prompted us to revisit some of the basic business principles of why Direct Mail can be so powerful and effective in both acquiring new customers and, of course, retaining your existing customers.
Statistics regarding the downturn in the volume of direct mail have attracted significant media coverage. However, somewhat less coverage is attributed to the decrease in volume which has come about by increased targeting and ‘best practice’ techniques such as using the various suppression files now available to the industry.
Here are some of the key benefits of using direct mail:
Personal
You talk to an individual on a one-to-one level. You have more time to persuade, convince and engage with your customers.
You can also ask a direct question and receive a direct response.
Measurable
Mail is one of the easiest media to measure responses and can be attributed directly to a specific activity. What you then learn can provide valuable information which will help you refine your next campaign.
Cost effective
In these tough and challenging economic times it’s important to realise that mail can provide a very affordable way to sell to people who want to buy your products.  Clearly targeting and profiling customers and audiences can greatly increase response levels and also minimise wastage.
Complementary
The age of integrated marketing is now with us and direct mail has a strong role to play in supporting other channels such as e-mail and telephony.
In summary, well planned and executed direct mail retains its place as a powerful way to increase your business’s revenue, build your brand and grow your customer base
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There is more good news for the industry as direct mail is not seen as the most environmentally harmful form of marketing.

According to a survey from CCB fastmap (the online research company) the front line in consumers’ fight to become environmentally aware is the supermarket.

But unwanted and non personalised items arriving on their doormat are scoring highly with consumers as environmentally damaging.

David Cole, Managing Director of CCB fastmap comments ….

“People perceived unpersonalised letters, coupons and samples as more than twice as environmentally harmful as personalised direct mail (20%) or personally addressed leaflets, coupons and samples (21%).

Furthermore, they believed leaflets etc delivered door to door to be slightly more harmful that those delivered by the postman (46% and 45% respectively).”

This is welcome news for the previously beleagured reputation of direct mail which has suffered as a somewhat easy target for critics and legislators …. at least there does not seem to be a groundswell of green outrage towards it.


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