A Simple Direct Marketing Primer for Business Executives & Digital Marketers

About Direct

Marketing

Presented by Jim Gilbert, President,

Gilbert Direct Marketing, Inc.

"There is only one valid definition of business

purpose – to create a customer. Companies

are not in business to make things…but to

make customers.”

-- Peter F. Drucker

Direct Marketing (DM) is an interactive system of marketing that:

Uses one or more advertising media to effect a measurable customer response

Or transaction at any location

And stores information about that event in a database.

Database used to capture response (and non response)

Data to be used for future decision making and targeted promotions! Database

Demographic/lifestyle data

Customer contact data

Transaction data

Database Analysis Promotions ROILifetime

value

Convert inquiries

Retain reactivate customers

Build loyalty

Find “Like” customers

Cross sell products

Database

Two way communication between customer or prospect and company.

Sometimes called interactive marketing.

No middle man.

Copy writer is the “sales person”.

Measurable, database always used. Direct marketer always accountable.

Lifetime Value (LTV): the net revenue stream generated by a customer, or customers over time. Includes all income less expenses. (also known as cLTV)

Direct Response Advertising: The strategic and tactical element of direct marketing that includes, direct mail, print ads, direct response television and internet promotions.

RFM (Recency, Frequency, Monetary), an analysis and list selection tool that allows for targeting prospects and customers from a customer database from best to worst.

Select: a segment of a list or database. A subset of the the total universe. Usually used to drill deeper into as list to increase results. For instance, more recent names (selecting last 6 months will provide better results than older names.

Indirect path to final consumer.

Product manufacturer “loses control” of the sales cycle.

Manufacturer let’s go of responsibility.

Advertising and branding lead the way.

Not very efficient!Final Consumer

Retailer

Wholesaler

Manufacturer

Direct path to final consumer.

Manufacturer retains control of the sales process.

Manufacturer responsible for success and failure.

Direct response advertising leads the way.

Branding seen as secondary to getting orders, leads, web visits, etc.

Efficiency gained via understanding full sales cycle.

Results & ROI

Manufacturer

Consumer

List or database

Target customer

Direct response promotion

Response and Analysis

Decision making/Research

Advocate

Multi buyer

Single buyer (try-er)

Prospect

The goal of the direct marketer is to move people higher up in the hierarchy.

Each level has a progressive $ value attached in terms of worth the the company.

Generate new customers at the lowest possible cost per acquisition.

Maximize customer lifetime value via repeat purchases.

The goals of every direct marketing organization need to be exclusively focused around the above!!!

The process must start with customers:

Who are they?

What do they need and want?

Where are they located?

When are they ready to buy?

How much will they buy? How often?

Why do they buy?

Direct Mail Marketing is a “test and roll”business!

Test the smallest quantity possible.

Use response and statistical analysis to project results over entire universe

Most test list orders between 5,000 – 10,000

Selections: drill down into list and allow for most bang for list renter buck (tightest match to your customers)

Selections add revenue to list order.

Direct Marketing 40/40/20 Rule

For success, Concentrate your efforts as follows:

40% on finding the right list that most closely matches your target market. (Lists are CRITICAL to your success)

40% on developing the most compelling offer you can to stimulate your target market market to respond.

20% on developing creative that “speaks” your offer benefits in the most meaningful way to your target market.

▪ Includes media, vehicle, layout, design, format, copy.

Presented by Gilbert Direct Marketing, Inc.

Email:

[email protected]

Blog:

http://gilbertdirectmarketing.com/

Linkedin:

http://www.linkedin.com/in/jimwgilbert/en

Follow me on Twitter:

http://www.twitter.com/gilbertdirect/