Business Articles Today|http://contents.esiting.com

TARGETING & SEGMENTATION Introductory marketing teaches us to make several assumptions and generalisations on the market. Top on that list, it is vital for a brand to narrow its target audience down to a set of demographic qualities based on age, sex, income etc. Even a brand like Coca-Cola, which has near universal appeal, targets their product toward youth. Beyond the target market there will be a number of market segments, again defined by geo-demographic characteristics. In traditional marketing, defining a market and its segments will build a picture of an audience which impacts on both the creative employed and the media buying strategy.

Do these methods of targeting and segmentation translate into Direct Marketing? In fact, theyre surprisingly unimportant. Whats important is that communications are relevant and are therefore based on real customer knowledge rather than generalisations. A unique creative approach for each customer tends to be cost-prohibitive and unrealistic (yes, in some niche business-to-business exercises it may be feasible). Some broad segmentation should be applied to drive the bulk of the creative outcome. These segments must work alongside copy change-outs to complete the communication. But this is a secondary concern.

Even the act of segmentation is different in Direct Marketing because it is developed from hard customer information rather than market research. To segment a database, data-mining techniques that account for combinations of every possible information variable are used (including transactional data), rather than a broad geo-demographic profile. But the segmentation is just the beginning, the driver for the message platform and tone & manner.

PERSONALISATION & RELEVANCE Direct Marketing talks to individuals, not markets. This is where traditional targeting methods fail when theyre bolted on to Direct Marketing. Instead of broad segmentation it is critical we appreciate that each customer is unique. So we must utilise every piece of information to make the message more relevant and effective.

For a start, it is proven that simple personalisation (such as prominent placement of name and address), will significantly increase response rates. Using transactional data and linking your message with a customers known behaviour is more powerful again it shows you understand the customer and that youre adapting your product or service offering for their needs.

Building a tailored approach makes for multiple copy versions within a single segment execution. But the additional effort and expense is worthwhile for its immediate impact and response, as well as the long-term benefit to the brand.

Using the available data to better personalise and add relevance to the communication should be a key distinction in personalised marketing efforts versus mass market communications. It will also make for better targeting as there will be situations where a relevant link cannot be made and some customer groups may be eliminated from the distribution. It makes the customer feel like youre delivering them a service. While all direct communications make a noise, those that communicate service are the messages people absorb. They make the recipient feel like more than just another customer. The communication has considered the individual and they feel privileged to receive your message. Just as important, the restricted and more responsive audience will result in decreased costs, improved ROI and protection of the brand.

ADVERTISING VERSUS CUSTOMER SERVICE Customer service is what finally differentiates direct communications from Traditional Advertising. In direct, the media is the property of the recipient so its important theres something in it for them. An ad in an envelope (or worse still, an ad in an email or text message) becomes an annoyance. If you address something specifically to an individual, they expect that communication is about them rather than some irrelevant chest-thumping about your product or brand. Far too often the traditional marketers view of integration is to put a stamp on their ad. Or thoughtlessly email or SMS the body copy to all their customers.

This hurts the entire Direct Marketing medium because consumers become tired of irrelevant messages intruding into their private space.

The best customer service messages hit customers at the right time in their relationship. By contrast, traditional advertisers bring a campaign mentality to Direct Marketing. Following this thinking, all customers receive communications at the same time. The truth is relevance is more easily created with triggered messages driven by customer behaviour. Reputable direct marketers are acutely aware of this and explore database activities that promote a new product or service while also delivering a service message to customers.

Electronic communications that are activity driven are particularly useful for time-sensitive service messages. It can actually add to customer convenience to receive email or text messages. And for the marketer the business opportunities are endless. Imagine if your insurance company could text message you in advance of a localised flood warning, or if your bank could email you to advise your credit card was approaching its credit limit. Customers are thankful for these communications; they provide a tangible benefit for engaging and opting to receive electronic communications.

Nothing compares to direct for delivering this information. Particularly in an electronic format because they are both directed to an individual and are time-critical. These newly formed channels supplement the existing communications mix and exist for the customers benefit. They are not simply substitutes for traditional messages in an effort to save marketing costs with no thought for what the customer would prefer.

CREATIVE EXECUTIONS The creative boundaries within Direct Marketing are yet to be reached and the majority of executions fail to explore the possibilities of the medium. This is a hangover from the frequency principle employed in traditional advertising and the false notion that direct executions are about the brand first and the message second.

With Direct Marketing the customer owns the message and will actively choose whether they take it in. The execution needs to immediately show the recipient that its a completely new message and to this end, the communication should be clearly distinct from previous contact. The message should retain consistency to the degree that it is obvious who its from, but the message must scream above the corporate branding. A template approach is often employed, meaning that visually the messages blur together with a degree of sameness rather than being received with impact. But designers are not Direct Marketers.

No other medium offers the creative freedom of direct mail. Yet most direct mail fails to engage the senses and is lost in a sea of white window DL envelopes. Customers receive mail from a number of places and to engage an audience the execution needs to stand apart. Mail offers unparalleled flexibility in terms of format - there are practically no size or shape constraints. Perhaps its because Traditional Advertisers and designers are used to fitting into standards dictated by a medium (press, billboard, TV) that they treat direct mail the same way. They see an A4 letter and a DLE insert as a starting canvas whereas the reality is an open book.

Creative freedom also suffers where marketers are guilty of trying to get their message to as many people as possible rather than improve the targeting. We all know Paretos Law or the 80/20 rule, yet too often the entire database is treated as equal. By focusing on just the top customers or prospects and delivering a stronger, non-standard creative execution the message can be made more compelling and results magnified. A smaller, targeted audience will result in more to spend on those that count. An improved per-unit budget allows things to be done differently, ensuring the communication is not just read but also remembered and acted on.

CONCLUSION Direct Marketing is not simply about creating awareness, its about delivering results, creating new customers and selling more to them. As shareholders and CEOs demand a return on investment, its understandable that marketers are turning to Direct Marketing for answers. Its here that they need to pause and note that Direct Marketing is a unique craft and counter-intuitive to Traditional Advertising thought processes. Until they rethink, the credibility of Direct Marketing will suffer through poor executions.

The potential of Direct Marketing is clear. Despite traditional thinking leading to sub-optimal planning and executions, many businesses have still generated positive returns from their Direct Marketing. But they have merely scratched the surface of what can be achieved. With the right assistance there remains potential to unlock increased returns and improve long-term customer satisfaction.

To make Direct Marketing work, marketers need to grasp the unique complexities of the media. The explosive growth and competition for the customers time will challenge marketers, demanding stronger executions to break through the clutter. All businesses looking to maximise a return from marketing should elicit the help of a true Direct Marketing specialist. Do this and these businesses will not only improve their success, they may profit where they had previously failed. Direct marketing does work in the right hands.

Clint Bratton is Director of LOUD Response, a division of the LOUD Communications Group based in Sydney, Australia. Your thoughts and comments are welcome and should be directed to clint@loudresponse.com.au

For more information on LOUD Response visit our website http://www.loudresponse.com.au

More articles at articles host

The legendary Frank Sinatra didnt fully come into his own, some say, until he belted out what became his signature song: My Way.

Though he had crooned countless hits as a solo act, and later in duets with people as varied as Bono, Celine Dion, and Charles Aznavour, it was My Way that symbolized Sinatras bigger-than-life persona and many gifts.

Sinatra didnt write that song.

Paul Anka, another former teenage heartthrob wrote it for The Chairman of The Board, as Sinatra was known to his Rat-Pack pals.

I heard Anka perform it once, but he didnt come close to capturing the magic of Sinatras sage-like interpretation.

Sinatra made the song his own, as so many of the greats do.

And once this functional ownership happens, the real composer doesnt matter. He moves offstage, far from the glow of appreciation and acclaim that the performing artist brings to the work.

Salespeople, telemarketers, and customer service people are increasingly being called upon to sing songs other composers have written for them.

Whether theyre called scripts, call guides, or call paths, these are compositions that also need to be performed with the right text, tone, and timing. They must be brought to life as artistically as possible, so theyll ring true to their audiences.

But in my decades of experience in sales, service, management, and consulting, Ive always been amazed by the naivet of front line personnel when it comes to understanding their performance duties.

They dont quite get the fact that they, too need to make the scripts that have been written by other people, their own.

Instead of trying to find their own voices within the scripts, they reject, out of hand the very idea that they need one in order to be as effective as possible with customers and prospects.

They believe winging-it, using a random patter that has been crudely fashioned, is going to outperform the script of an accomplished sales or service composer.

They would be wise to study Sinatra, who by no means had the most beautiful voice of his generation.

But he had a unique and compelling style that he brought to his work.

It doesnt matter who writes your tunes. Its your job to make them hits!

More articles at Articles Database

Value is in the Eye of the Beholder

Sales today is filled with stereotypes. The sleazy car salesman, the annoying telemarketer, and the ever-present pushy commission salesman. And in the sales profession, we may not realize it but we do think of other people in our profession this way sometimes. Now, this may not be because of our vision of them it may, in fact, be because of their vision of us as customers, and their knowledge of the sales process.

We all know that the profession of sales has a stigma attached to it. If youre a salesperson, you are pushy, rude, overbearing, and only want money at least, that is the common misconception. And although you may not want to hear it, this is true of some. Those obnoxious, pretentious and sometimes even nauseating individuals, who are the primary reason for a bad outlook on salespeople. They are not doing this intentionally, though. They just do not know sales the way they should know sales.

Think of this. You are struggling your way through aisles upon aisles of items, arms full, and have forgotten a basket. You see an employee walk by, and look. One of two things could happen.

The uneducated sales person would continue to walk by, never to be seen again as they hunt for a more worthy prospect. However, the educated salesperson would handle this differently.

You would see them walk by, and think nothing of it. All of a sudden, a friendly voice comes from behind you Here you go. You looked like you could use some help.

The employee hands you a basket with a smile. They take a look at the items in your basket, and ask if you have any questions. You tell them that you were wondering which cleaner is better on your flooring. The salesperson responds with a smile, and proceeds to give you information on each floor cleaning product. You thank them, and with another smile, the salesperson informs you of where you can find someone to answer any other questions, and continues down the aisle.

Which person helped the customer more? Which person just made a sale, however small, where the other hadnt seen one?

The more important question to ask yourself though, is which salesperson are you.

This may or may not be a situation you can relate to. But if you have been helped in this way, you will surely remember it. And you will probably go back there again, hoping for the same great experience. But at least one of your customers can relate to this experience, and look back with a smile. Shouldnt all of them?

It should be every salespersons goal to genuinely help their customers. Instead of being the uneducated salesperson, try this. Rather than recommending a certain product, or completely ignoring a browsing customer, try to figure out what they really need. Use a random act of kindness as an icebreaker in this case, a basket to someone who needed it. Ask if they need assistance with anything. Give them information on all products they might be interested in. Answer any other questions, tell them where you will be, and politely leave them to their decision. This might seem simple, but you will be amazed at the response. Higher customer satisfaction, more return customers, more referrals, and more sales. Just from a smile, a question, and leaving them be.

Cherilyn Lester is an accomplished sales professional and is currently involved in sales training for retail establishments. Most training is done at a distance, providing an easy resource for companies around the globe on a contract basis. You can reach her at crlester@hotmail.com

More articles at www.articles-host.com

With all of the recent data theft in the financial sector, it is important to make sure that we don’t go crazy trying to protect ourselves from risk. Risk management does have a value but this value lies mostly on the front end. Reactionary risk management almost always produces a point at where the value of protecting oneself or one’s customers overshadows the product or service that you are offering. The majority of companies always go beyond this point, some thinking they can even sell it to the customer as a security measure and build their brand with it.

This is a lazy and terribly detrimental course of action for any corporation to undertake.

I recently called Citistreet, the company that manages the 401K plans for the corporation I will be leaving in a month. I was sent a PIN number about six months ago via snail mail but misplaced the paper and one of the security questions they ask is, What was your start date with the company. Well, I worked for a subsidiary of the company that was eventually taken back into the motherfold–so I really have two hire dates and I couldn’t get it straight with the woman from Citistreet.

So, the first gap in their process was a pathetic back-up security system of identifying appropriate customers.

Next, I was told that I would be sent a new PIN number through the mail in 5-7 business days and could then access my account via the web or the phone.

I said, So, let me get this straight…I have to wait 5-7 business days to get into my account? You do realize that we’re talking my money here, right? I want access to my money right now and if you can’t do that, then I am not going to take my money elsewhere (in 5-7 business days) but I’m going to tell everyone I know about the pathetic operations process you guys have (that’s what I’m doing now).

In today’s Instant Information environment, it is unacceptable to ask your customers to wait even 5-7 minutes to deliver information. Imagine my shock when I was asked to wait 5-7 business days–it was like someone told Neil Armstrong and Buzz Aldrin after their Apollo 11 space capsule crashed into the ocean that they would be returning to land via clipper ship and the journey would take four weeks.

So, I’m cashing out my funds and moving to another vendor and I think any of you who use this company are insane not to do the same.

The woman on the phone apologized and kept saying, I’m sorry, Sir–but that’s just our process.

I finally said, Your process just isn’t good enough. Fix it or the market will. What she didn’t realize is that I am the market and so are each of you. Vote with your social contracts, my friends, and you will correct the market and remove incompetence as a barrier to raising the living standard all over the world.

More articles at www.articles-host.com