Archive for the ‘marketing’ Category

NYC Announces Use of Quick Response (QR) Codes

Tuesday, March 1st, 2011

Mayor Bloomberg Announces Use of Quick Response (QR) Codes on Permits

Mayor Michael R. Bloomberg, Deputy Mayor for Operations Stephen Goldsmith and Buildings Commissioner Robert LiMandri today announced the use of Quick Response (QR) codes on all Department of Buildings permits, providing New Yorkers with instant access to information related to buildings and construction sites throughout New York City. Similar to how a barcode provides information through a scanner, QR codes provide smartphone users with immediate access to data by scanning the displayed code with their device.

By downloading a free application on a smartphone, New Yorkers will be able to scan the QR code of any construction permit and instantly learn details about the ongoing project – including the approved scope of work, identities of the property owner and job applicant, other approved projects associated with the permit, the complaints and violations related to the location and user will have the ability to click a link that will initiate a phone call to 311 to make a complaint. The Mayor announced the start of the program on Broad Street in Lower Manhattan, where he demonstrated the technology at an active construction site.

“New Yorkers expect to be able to gather information instantly, and the use of QR codes will allow them to get all information about construction work while standing on the sidewalk,” said Mayor Bloomberg. “The QR codes will provide more efficient access to government data, help the public know what’s being built in their neighborhoods, and it will allow people to make more informed decisions about things from renting an apartment to making a complaint. This is another example of how we are using the latest advances in technology to increase accountability and provide more information to the public.”

“New Yorkers naturally want to know as much as possible about construction work that affects their neighborhoods,” said Deputy Mayor Goldsmith. “This is an example of how the latest technology can be a valuable asset in keeping the public informed.”

“We are providing New Yorkers with the tools they need to learn about any construction project – in seconds,” said Commissioner LiMandri. “Construction is vital to the growth of this city, but when that work impacts our quality of life, residents should be able to quickly learn who is responsible and what work has been approved. By scanning a QR code on a permit, New Yorkers can easily learn important details about construction work in their neighborhood and if that work is safe and lawful. I encourage all New Yorkers to download a QR app and scan a permit today.”

After scanning a QR code on a Department of Buildings’ permit, users will be brought to mobile version of the Department’s Buildings Information System, which provides permit and violation history for every building in the City. Users will be taken directly to the full project information screen for the individual project they want to review. Construction permits will have QR codes added to them as they are replaced at the 975,000 building and construction sites in New York City and all permits are expected to have QR codes by roughly 2013. Smartphone users can download a free QR reader by going to the app store on their device and searching for “QR” – a variety of free applications are available.

QR codes also will appear on after-hours variances and Place of Assembly certificates of operation. In 2010, the Department of Buildings issued more than 179,000 construction permits and 33,000 after-hours variances, which display basic information about projects and are required to be posted at job sites during construction operations. The Department issues permits for work involving boilers, concrete, demolition, cranes, electrical, excavations, general construction, plumbing, scaffolding and sidewalk sheds. Last year, 4,520 Place of Assembly certificates of operation were issued and/or renewed, and these documents provide basic details about how a particular space can be used.

By scanning the QR code on these documents, New Yorkers will learn more information about who is performing this work, including the addresses and telephone numbers of property owners and job applicants, which is typically a licensed architect or engineer or general contractor on the project.

The City currently uses QR codes on Department of Sanitation vehicles, which takes users to a Public Service Announcement video on recycling and on the Staten Island Ferry, which takes users to a 26 minute video – roughly the length of the ferry ride – on interesting attractions and activities in New York City.

The Department of Buildings has been working to make the construction process more transparent, improve safety and improve quality of life. Since 2002, detailed permit and property information about the city’s 975,000 buildings has been made available on www.nyc.gov, and those who file complaints through 311 can go online to monitor the status of inspections in response to those complaints. In 2009, the Department launched the Development Challenge Process, which enables the public to view online diagrams of proposed buildings before work begins. Residents also can submit zoning challenges, and after those challenges are reviewed, Department responses are posted on the website. New York was the first city in the country to post such diagrams online before construction begins.

 

Should You Think Quality or Quantity in B-to-B Lead Gen?

Monday, February 28th, 2011

Saw this post on Chief Business Marketer, and thought it spoke to what a lot of my clients are looking at:

The bottom line in any marketing campaign today is return on investment. That makes it imperative to know what matters more in your lead generation efforts, quality or quantity.

“If you put something out there that gets a lot of respondents, those people aren’t necessarily leads,” notes David Azulay, vice president, client services at The Kern Organization.

Much depends on reaching your prospect the right way, at the right time, in their buying cycle. Sometimes, you need quantity, notes Azulay. For example, a startup ISP he worked with only cared about getting names to fill up the sales funnel. They then scored those names and passed them along to sales reps. In contrast, an established software vendor selling a million-dollar solution with a long sales cycle needs to craft a much more careful campaign that nurtures prospects along the way.

What Offer is Right for You?

Whether you want quality or quantity campaigns determines the types of offers you should make to your prospects, says Azulay.

For example, if you’re looking to get a large number of folks to raise their hand and overcome their reluctance to even talk to a salesperson, offers such as gas or Amazon gift cards perform in today’s thrifty environment. (In flusher times, notes Azulay, leases on flashy cars played well.)

“You need to obtain insight into what they want and ease them into the process, and make them more comfortable with you,” he says.

If you’re looking for quality leads, a good place to start would be offers that give prospects more information about their problem that your business might be able to solve. Take a look at your inventory of information, such as testimonials, webinars and white papers.

“What do you have that can communicate value to prospects?” asks Azulay. “Often, companies don’t know what they have and how to hit prospects with offers at different times in the sales cycle.”

“Don’t make it too complicated or vague—offers that are related to what you sell and are relevant work best,” Azulay notes.

Today, B-to-B marketers need to have offers for several different touches before they ask a customer for a meeting. A first or second touch might involve getting a prospect to offer some information in exchange for a small gift such as a USB drive or the chance to enter a sweepstakes. To get a prospect on the phone, marketers may need to combine a hard and soft offer—say, offer a $100 gift card in exchange for a conversation.

Sales and Marketing Need to Get on the Same Page

The lead generation process is strongest, of course, when sales and marketing work together. But sales and marketing aren’t always aligned, points out Azulay.

“Marketing wants to bring in more leads and hand them off, but sales wants more qualified leads,” he says. “Sales doesn’t want to cultivate leads. Sales reps want to schedule the in-person appointment and close the sale.”

Often, many leads sit in a database and get outdated because sales reps don’t have any relationship with them and don’t have the time to cultivate these fresh names. That means the initiative falls on marketing.

“Marketers spend millions and many sales leads are never followed up on because there is no relationship,” Azulay says. “Maybe 50% get followed up on and maybe half of those get qualified. But, if you cultivated those other 50%, you could create a relationship.

“If you’re not ready to do complex lead nurturing, keep it simple,” he suggests. “Keep it automated and get the message out. If you don’t have an automated nurture system, after the data goes out to sales you don’t know what happened to those leads and why prospects didn’t buy.”

It’s important, though, to remember that regardless of who is making the contact—sales, marketing or other departments, possibly about multiple product lines—customers should only be touched with the most relevant information. “You don’t want to risk them opting out of all communications in frustration.”

Lead Gen and Shrinking Budgets—What to Do?

In the current economy, every B-to-B company is facing a smaller marketing budget. However, the demand generation process needs to keep going, says Azulay. You have to put the investment in or you won’t have any sales.

Companies shouldn’t take the economy as a cue to simply shift all their dollars online, though. “If mail worked for you three years ago, why do you think it won’t work now?” he asks. “I don’t think everyone should be starting from scratch.”

Now is the time to test and look at new lead gen tactics you might not have tried before, such as mobile, he says.

“Also, there are many tactics that we’re not measuring as well as we can, such as click-throughs on splash or thank you pages,” Azulay notes. “We need to look at where we’re missing opportunities to track and test. Monitor where people are looking online and do an inventory of your offers. Try putting a different white paper on your website and see what pulls better—sometimes, it’s that simple.”

Get Someone Else to Sell Your Proposition

Don’t just toot your own horn—get someone else to toot it for you. If you’re trying to reach high-level CTOs, get a respected industry resource, such as a publication or consultancy, to evaluate you. Ask your customers what they think, too.

Source is here.

 

Young Adults Strongly Prefer Offline to Online Sources for Marketing Offers, Research Reveals

Wednesday, September 22nd, 2010

I came across this report this morning, and found it interesting especially when thinking about all the time, money and resources companies are putting into their social media budgets to attract this exact audience.

- Steve

From: Epslion

North American Survey Results Show 2-1 and 3-1 Offline Preference Margin, Depending On Product

DALLAS, August 24, 2010 – Six years after the launch of Facebook, North American consumers in the valued 18-34 year-old demographic prefer by a wide margin to learn about marketing offers via postal mail and newspapers rather than online sources such as social media platforms, according to national survey research from ICOM, a division of Epsilon Targeting.

Additionally, the ICOM research shows that preferential attitudes about the trustworthiness of mail strengthened for consumer respondents in all age groups from 2008 to 2010.The 2010 study of 2569 U.S. households and 2209 Canadian households focused on consumer preferences in regard to the ever-expanding array of communications channels for the delivery of marketing information, offers and promotions. Responses came from consumers ranging in age from 18 to 55 and above.

By the numbers, here are some of the key results from ICOM’s 2010 study of North American consumers’ marketing communication channel preferences –

For household and health products, the preference among 18-34 year-olds for receiving marketing information from offline sources led by mail and newspapers is 2 to 3 times greater than online sources such as social media. Examples of consumer preferences for offline versus online are:

Product Offline Online
Personal Care 62% 22%
Food Products 66% 23%
Cleaning Products 66% 20%
Over the Counter Medicine 53% 21%
Sensitive Health Products 46% 21%
Prescription Medicine 45% 22%

Travel was the exception, where 18-34 year-olds preferred online to offline information by a 42% to 35% margin, however, Insurance and Financial Services followed the overall trend, with the 18-34 age group preferring offline sources 43% to 21% and 44% to 19%, respectively.

The trust pendulum is swinging in the direction of mail for survey takers in all age brackets:

36% of US respondents in 2010 said information is more private if sent through the mail vs. email or online, up from 29% in 2008; corresponding responses in Canada were 38% and 35%

25% of US respondents in 2010 said a lot of online information can’t be trusted, up from 19% in 2008; corresponding responses in Canada were 28% and 24%

20% of US respondents in 2010 said they trust information received by mail more than online, up from 12% in 2008; corresponding responses in Canada were 25% and 18%.

For health information, consumers favor doctors and nurses (80% US, 83% Canada), but for general products they rank as most trustworthy friends and family (57% US, 52% Canada), newspapers (26% US, 26% Canada), company web sites (22% US, 20% Canada), television (20% US, 21% Canada) and brochures and flyers (18% US, 18% Canada). The numbers for social media sites, by comparison, were Facebook (8% US, 6% Canada), YouTube (7% US, 5% Canada) and Twitter (7% US, 5% Canada).

“A key takeaway from this research is that marketers targeting coveted 18-34 year olds who are tempted to invest solely in social media could be missing a significant portion of their audience,” said ICOM, a division of Epsilon Targeting Vice President Warren Storey.

“For example, a consumer goods company that relies heavily on a female audience, especially moms, could fall short of expectations if it uses only the social media channel,” Storey said. “Companies need to employ a multi-channel approach to gain maximum engagement with their customers.”

Other key findings from ICOM’s survey about channel preferences include the following:

45% of US men and 35% of Canadian men do not have any social media accounts, 36% of US women and 31% of Canadian women do not have any social media accounts

25% of respondents, US and Canadian, said they get more postal mail versus a year ago; 72% US and 66% Canadian said they get more email versus a year ago

In both the US and Canada, women are more likely than men to prefer addressed or unaddressed mail for many product categories, and men are more likely to prefer the Internet or email as a mode of receiving marketing information.

The factors driving consumers to certain channels – according to the ICOM research are trust, convenience, richness and relevance of information and environmental concerns.

“The finding that only 25% of respondents perceive they’re getting more postal mail compared to a year ago, while nearly three times that amount say they’re getting more email is telling, and signals to marketers there is an opportunity to gain key consumers’ attention and interest by using the direct mail channel,” Storey said.

“Overall, our research confirms the proliferation of channel choices but shows that a unique combination or balance of favored channels needs to be identified, and that combination likely includes direct mail and other offline options, despite the notion by some that offline is no longer effective,” he said.

More in-depth information about ICOM’s channel preference research is available in a report titled “Finding the Right Channel Combination: What Drives Channel Choice.” Click here to view this report.

Direct Mail is Still Relevant

Monday, September 20th, 2010

I stumbled upon the following post this morning, written by the Ad Contrarian, it points out some very real facts that often times get omitted in the decision making process of marketing departments et al. While it doesn’t speak directly to Direct mail, it does in my opinion point to the fact that mail, while considered by some to be “old-school” is still quantifiable and viable.

enjoy -

steve

Top 10 Double-Secret Unknown Facts About Advertising

As all AdContras know, the marketing and advertising industries have been hijacked by web-addled digi-maniacs who don’t know a fact from a fart.

Those of us who like to operate our businesses on the basis of facts, not “buzz”‘ and baloney, are in an ongoing state of war with web marketing hustlers and their endless feedback loop of misleading information.

So, as a service to my loyal, long-suffering AdContras, I have put together the Top 10 Double-Secret Unknown Facts About Advertising. It is a little crib-sheet to help you fight the forces of ignorance and trendiness wherever you may find them.

Top 10 Double-Secret Unknown Facts About Advertising

1 ) 99.9% of people who are served an online display ad do not click on it.

2 ) TV viewership is now at its highest point ever.

3 ) 96% of all retail activity is done in a store. 4% is done on line.

4 ) DVR owners watch live TV 95% of the time. 5% of the time they watch recorded material.

5 ) 99% percent of all video viewing is done on a television. 1% is done on line.

6 ) The difference in purchasing behavior between people who use DVRs to skip ads and those who don’t: None.

7 ) Since the 1990s, click-through rates for banner ads have dropped 97.5%.

8 ) Since the introduction of TiVo, real time TV viewing has increased over 20%.

9 ) Baby boomers dominate 94% of all consumer packaged goods categories. 5% of advertising is aimed at them.

10 ) TV viewers are no more likely to leave the room during a commercial break than they are before or after the break.

If you would like to print a nice, clean copy of this list and pin it up on your boss’s wall, you can find it here.

Here are my sources:

1. DoubleClick, Benchmark Report, 2009

2. Nielsen Three Screen Report, Q1 2010

3. U.S. Department of Commerce, Q2 2010; Nielsen Three Screen Report, Q1 2010

4. Duke University, Do DVRs Influence Sales?

5. Nielsen Three Screen Report, Q1 2010

6. Duke University, Do DVRs Influence Sales?

7. Li, Hairong; Leckenby, John D. (2004). “Internet Advertising Formats and Effectiveness”. Center for Interactive Advertising. And DoubleClick, Benchmark Report, 2009

8. NielsenWire, Nov. 10, 2009

9. Marketing Daily,  July 22, 2010

10. Council for Research Excellence, May 10, 2010

Do You Know the Three Most Important Marketing Metrics?

Thursday, September 16th, 2010

(from Digital Nirvana)

By Michael Paladini, Director of Analytics, Wilde Agency

It’s no secret that all of us in marketing are under increasing pressure to show results. Every marketing effort and expense must be quantified and justified. However, sometimes the numbers aren’t what they seem. Higher response rates don’t always mean better results. Conversion rates don’t always tell the whole story. And average order value can be misleading. So how can you make sure your programs receive the credit they are due?

Let’s take two direct marketing campaigns in the same industry, selling the same kind of product or service, both with a target audience of 100,000 people. The first has a response rate of 1.2%, the second a response of 1.5%. The second one is better with the 1.5% response, right?

Not necessarily. Suppose the campaign is two-step. That means the initial responses are just leads that now must go through the sales process.

The 1,200 leads from the first campaign go into a process that converts a third of them to customers, while the 1,500 leads from the second see only a 20% conversion. So the first one produces 400 customers, while the second produces 300. Now the first campaign, the one wit the lower response rate, is in fact better because it delivered more qualified leads. Right?

Maybe not. The 400 customers had an average order value, or AOV, of only $400. But the 300 had an AOV of $600. So it looks like the first mailing generated only $160,000 in revenue (400 x $400), while the second generated $180,000 (300 x $600). Okay, so now we’ve got it. The second campaign is better after all!

Ah, let’s not be too hasty. Because it turns out that those 400 sales in fact encompassed 450 products or about 1.13 products per customer. In fact, it was each product that had an AOV of $400. Meanwhile, the 300 customers from our second campaign indeed represented only 300 sales. So we really got $180,000 from the first mailing after all (450 items x $400). It turns out that both campaigns are the same!

Or are they? Because we haven’t even discussed the profit margin on the products or services sold, downstream purchases, any effects of non-payment on some customers’ part, the impact of referrals, the relative cost of the original campaigns, and so on.

In the end, it’s not a matter of response rate, conversion rate, AOV, or any one metric alone. It’s about the metric that wraps them all together, ROI:what did we earn in profits, for what we spent.

You’ve surely heard the famous remark that only three things matter in real estate: location, location, location. Similarly, in direct response, the three most important metrics are ROI, ROIand ROI. Marketing’s ultimate goal should be to deliver as much revenue as profitably as possible. And that involves managing a host of mathematical interactions that we must manage from start to finish.

The Stars Align for QR Codes :: Info Trends

Tuesday, March 16th, 2010

The Stars Align for QR Codes

By Barb Pellow, InfoTrends

Over the past several years, there has been a lot of buzz about Quick Response (QR) codes. Although QR codes are now widely used in countries like Japan, they have been slow to take off in the United States. Nevertheless, 2010 could be the year where the U.S. actually sees the true potential of QR codes. The combination of smartphones and printed materials will help drive this market, and endorsements by brands like Google and the ability to drive real-time demand will add fuel to the fire.

The Mobile Story No one denies the importance of mobile technology. Cell phones have truly become an integral part of our everyday lives. Statistics from a variety of sources (e.g., eMarketer, Mobile Marketer, InfoTrends) tell the story:

  • At the end of 2007, there were almost three times as many cell phone subscriptions as there were total users of the Internet.
  • There were four times as many cell phones as there were personal computers of all kinds (including laptops, desktops, and servers).
  • More than 90% of us keep our cell phones within arm’s reach 24 hours a day, 7 days a week, 365 days of the year.
  • More than 70% of us actually take our cell phones to bed with us.
  • Over 70% of us now use our cell phones as alarm clocks.
  • A study by Unisys revealed that if we lose our wallet, we report it missing in 26 hours. If we lose our cell phone, we report it missing in 68 minutes.

Then There’s Print… Consider all the printed messages that surround you on a daily basis—there are billboards, flyers, newsletters, books, and magazines. While some marketers are turning away from print and putting all of their eggs in the online basket, savvy marketers understand the importance of going offline and using signage and printed media to get their brands in front of consumers on the street.

Particularly within the younger generation, the focus on smartphones is huge. Texting is replacing e-mailing as a primary mode of communication for some. Mobile devices are the primary interface for the Internet among younger consumers. Savvy marketers know that they need to reach consumers who are unchained from their home computers. Connecting with these consumers means communicating via mobile devices, signage, packaging, interactive magazines/newspapers, catalogs, and direct mail.

Google Gets It! Google added credibility to the world of QR codes this past December. The company began using QR codes to promote its Local Business service. Google mailed out window stickers with two-dimensional QR codes to the most-searched for or clicked-on businesses in its local business directory. These stickers were sent to more than 100,000 local businesses.

By-passers with QR-enabled mobile devices were able to scan the code to call up a Google Mobile local directory page for one of these Favorite Places. The directory pages generally include a map, a phone number, directions, the address, reviews, and a link to the business’ Web site. 

Local businesses can also set up coupon offers through their Google directory page, which would turn the QR code into a mobile coupon. Consumers who are standing at a store window might be enticed to come in and take advantage of a special offer.

Figure 1: Window Sticker for Favorite Places Campaign

QR codes have certainly taken off in Japan, but U.S. adoption has been much slower. With this endorsement and promotion by Google, the U.S. might become the next hotbed of activity for QR codes. In the near future, Google Maps on mobile phones will start including businesses as points of interest. Google calls these “smart maps” internally. As the businesses are added, they are clickable and their Places page pops up.

Businesses will be selected based on their PlaceRank. According to Google, PlaceRank is like PageRank for places. The service attempts to figure out how prominent a place is based on factors such as references on the Web, reviews, photos, how many people know about it, and how long it has been around. Google has figured out a way to leverage its technology and QR codes to generate the most important value proposition—real-time demand.

The Bottom Line As move forward through 2010, the stars are aligned for QR codes. Major brands like Google are now endorsing QR codes as a trigger to real-time demand for businesses. I believe that QR codes will soon become more mainstream in the United States as a result. If you are a local business or a big brand investigating this potential, the combination of location-based needs and real-time information means that the sky is the limit!

Grow of B2B Marketing Budgets to be Slow

Thursday, March 11th, 2010

(from the Print CEO)

By David Dodd on March 9th, 2010

A recent survey by Target Marketing magazine indicates that B2B direct marketing budgets will grow only slowly in 2010.  Over half (55%) of B2B marketers responding to the “Media Usage Forecast 2010″ survey (conducted in January 2010) said they expect 2010 budgets to be the same as 2009, while 23% of respondents expect 2010 budgets to be higher, and 13% expect further cuts.  Nine percent of respondents indicated they weren’t sure how 2010 spending would compare with 2009.

These findings are similar to the results of a November 2009 survey byBtoB Magazine. In that survey, 47% of respondents expected 2010 marketing budgets to be flat, 39% expected more spending in 2010, and 13% expected more cuts in 2010.

The Target Marketing survey also reflects the continuing shift to online marketing techniques and channels.  When asked where they expect toincrease spending in 2010, marketers (both B2B and B2C) responded as follows:

  • E-mail – 68.4%
  • SEO – 47.7%
  • Paid Search – 45.2%
  • Advertising on Web Sites – 32.9%
  • Direct Mail – 31.8%
  • Webcasts – 24.5%
  • Affiliate Marketing – 22.0%
  • Outbound Telemarketing – 20.2%
  • Mobile Marketing – 19.3%
  • DR Space Advertising – 12.1%
  • Insert Media – 10.9%
  • DR Radio – 6.1%
  • DR TV – 4.3%

With respect to direct mail, Target Marketing said, “Compared to last year’s numbers, the percent of marketers expecting to decrease their budgets for direct mail has dropped a few percentage points, while the amount stating they don’t use direct mail held steady; the result should be a flat year in terms of investment.”

65% said they would prefer to have samples mailed to their home

Tuesday, March 2nd, 2010

Recently, I have been engaged in a lot of conversations that center around the distribuion portion of my sales approach (I help clients by “engineering integrated  design, print and distribution solutions”). I am currently working with a F500 company on a closed loop system that includes design, hypod print production, and now distribution. Over the course of that conversation I was asked to help them develop ideas to drive traffic to their distribution/sales points (in this case grocery stores). I am working with them to develop an extremely robust on-line solution, and this article recently published by Deliver Magazine speaks to some of the ideas and plans we have in presented to them.

Why Product Sampling Works so Well from Deliver Magazine

Let sampling campaigns prove the power of your product.

By Burt Rhodes

Sure, good marketers are experts at explaining to consumers the many benefits and advantages of a new product or brand. But convincing those same customers to purchase isn’t always as simple as broadcasting a commercial or aiming e-mails at them.

Sometimes, say experts, winning consumers to a product means letting them try it before they buy it. Sometimes, a brand has to lead by a sample.

“Product samples are a way of creating excitement,” explains Rico Cipriaso, a corporate marketing veteran who has spearheaded product sampling campaigns for major international beauty brands. “Sending samples is one of the best ways to reproduce a store experience in the customer’s home.”

Indeed, sampling continues to rank among the most effective tactics in the history of direct marketing, in part because of its ability to do what no other medium can: put a physical product in customers’ hands. Moreover, the practice is finding new adherents even in the digital age.

Consequently, while some CMOs struggle to make sense of new media initiatives, many others are enjoying steady success thanks to a rediscovery of the appeal of product sampling and the power of direct mail to get these campaigns to customers.

“Sampling is growing in importance [because] consumers are bombarded with messages,” says Cindy Johnson, who worked as the corporate sampling programs manager for Procter & Gamble before starting her own marketing consultancy. “It’s just really hard to make an impact on consumers today. But people love samples.”

Certainly, sampling allows companies to extend their message. According to figures from the Promotion Marketing Association, product samples reach 70 million households each quarter. A recent PMA poll also found that 75 percent of customers say they have become aware of a product through a sample.

And consumers are acting on this awareness, with many saying that product sampling helps them choose among brands. For instance, 81 percent of consumers said they would try a product after receiving a sample, according to a poll conducted in December by Opinion Research Corp. on behalf of the United States Postal Service.® Moreover, 61 percent of those polled said that sampling a product is the most effective way to get them to try a brand.

“It is the consumer-preferred method of marketing,” Johnson says. “[Consumers] are tuning out the advertising, [but] they love to try new things. That’s why product sampling works.”

Like Cipriaso, Johnson maintains that product sampling is an ideal way to win customers’ faith in a product. “Consumers feel the sample gives them the actual experience of the product,” she says. “They don’t have to risk any investment to be able to try it.”

This is important, continues Johnson, because many consumers are still anxious about the current economy and have become much more discriminating about their purchases. “That’s why sampling is even more successful right now,” she says. “Because they don’t want to invest dollars in new products. So they are relying on that trial experience to tell them whether they are going to like the product or not.”

Brands can get samples to consumers through an assortment of avenues, of course, from event marketing giveaways to newspaper inserts. Direct mail efforts, though, offer one of the surest avenues to reach consumers, say marketers.

Nick Peragine, product sales manager for Georgia-based lighting manufacturer PureSpectrum, says his company recently used mail to send samples of a new energy-efficient light bulb to a wide assortment of B-to-B contacts. “We came to the decision to use direct mail primarily because it was the easiest way to introduce our products to a large number of potential constituents over a broad area — and to be able to get actual samples of our product in their hands.”

Johnson says the precision of mail marketing also gives it an advantage in product sampling campaigns, although she acknowledges that targeting isn’t everything when it comes to sampling. “With sampling, targeting is very important, but there are other elements that go into the return on investment. Like if you’re resampling the same person: I don’t care if you have the right target, if you have poor sample control there’s no point in doing the program.”

And while it’s a natural fit with direct mail, product sampling also can be integrated into larger, multimedia campaigns. In the Opinion Research Corp. poll, 84 percent of respondents said they would be likely to log on to a Web site to receive samples if they received a post card driving them to the site.

“A lot of retailers have sites where you can request a sample,” Johnson notes, pointing out how one grocery chain has blended mail and sampling with digital elements of its marketing mix. “And because consumers are thinking they get the sample through that supermarket, then that’s where they go to find the product if they want to buy it. Consumers link the brand with the retailer.”

Thus, the retailer enjoys the bump up in brand opinion and recognition, she says, while its sampling vendor carries the actual responsibility for distributing the products.

Johnson says these integrated programs also give marketers a chance to learn more about their customers. “A lot of times [after sending a sample], we give them a Web site to register on,” she explains. “We say, ‘Here’s a Web site. We’re collecting information about your sample, giving away a small prize.’ And they will go online and register, and provide us with the feedback that way.”

Likewise, many brands are making use of social media networks in their sampling efforts. It’s becoming increasingly common, for instance, for brands to mail samples of new products to a select list of targets and then watch as those recipients go to Facebook® and other sites to post rave reviews about the samples.

This suggests that product sampling also engenders consumer loyalty, much like frequent flyer programs and other initiatives, Cipriaso says. He notes how quality product samples, despite usually being distributed in small quantities, have a way of getting consumers to come back to certain brands. “After we introduce you to our products, we want to make sure we keep you forever,” he says.
“We also know that the best customers tend to replenish. They buy the same product over and over again because they use it every day and they love it.”

And these customers also present ideal targets for sampling campaigns designed to expand a brand line, says Johnson: “Let’s say you’re already using a shampoo by a particular brand. If that brand is expanding into the antiperspirant and moisturizer categories, the person who already uses another product by that brand may be more receptive to buying the product. Sometimes, giving them a sample will help make that transition happen.”

But for all their enthusiasm about product sampling, Johnson and others don’t hesitate to warn CMOs about taking sampling campaigns too lightly. No marketing strategy is ever easy to execute, Johnson points out, so marketers need to approach sampling as wisely as they would any other tactic. “The famous misconception is that product sampling is easy,” she says. “You really do need to dot your i’s and cross your t’s.”

In the end, though, when done right, product sampling can yield not only invaluable brand exposure, but also solid ROI, richer knowledge about customers and a stronger bond between companies and the people who buy their goods. Put simply, says Cipriaso, “It’s a business case that works.”

A little goes a long way

Consumers love getting something free — even if it’s a tiny bit of something, as evidenced by recent sampling initiatives from these brands.

Texas Pete Hot Sauce

The hot sauce brand recently touted its flavor varieties by offering a limited number of product samples through the social networking site Facebook.® The company planned to distribute its 10,000 samples over a four-week period, but hit that number of requests in just six days. Each sample contained a 1.9-ounce bottle of the consumer’s flavor of choice, a can koozie and a coupon that held a unique bar code to help the company track its redemption rate.

PureSpectrum

When the Georgia-based lighting company needed to distinguish its new 20-watt dimmable compact fluorescent lamp from rival products, a sample campaign was the answer. Test products were mailed to the company’s target audience — the 964 rural electrical co-ops across the United States. The campaign results generated an influx of purchase orders, product sales and requests for quotes.

Splenda

In July, the sweetener brand used sampling to give consumers a first look at its new pocket-sized mist spray and to gather feedback before rollout. Splenda required requesters to become fans of its Facebook page, which let the company better target its key demographic — women 25 and older — through their profiles on the social networking site. More than 16,000 samples were given away in just two weeks.

Living Proof

Free samples flew off the virtual shelves when the beauty brand offered Facebook® users a trial of its No Frizz hair care product. More than 15,000 samples were requested in a 48-hour period. Plus, fan numbers for the product spiked from around 1,000 to more than 7,000 during the promotion, even though consumers weren’t required to become a fan to receive the sample.

New Beauty magazine

Four times a year, the publication’s beauty sampling program, TestTube,™ sends subscribers deluxe-size samples of beauty products along with a booklet detailing the products’ features and benefits. After the first year of the program’s launch, 96 percent of recipients said they purchased a fullprice version of a sample item. The TestTube™ currently has over 20,000 subscribers, and the program continues to grow.

Cablevision Systems

Last fall, the New York–area cable operator brought interactive banner ads to TV that let its nearly 3 million subscribers order product samples from companies, such as Benjamin Moore, with a click of their TV remotes.

Sephora

The retail beauty chain offers consumers up to three free product samples with every online order. Customers select samples during checkout and the trial offerings are mailed with their purchased products.

Lead by a sample

Samples endure as a powerful way to win customers. In December, Opinion Research Corp. surveyed 1,000 consumers on behalf of the USPS® — all of them primarily responsible for sorting their household’s mail.

Here are a few findings:

81% of those surveyed said they will try a product after they receive a free sample.

61% said an actual product sample is the most effective way for a brand to get them to try a product.

65% said they would prefer to have samples mailed to their home.

72% said they would prefer receiving multiple samples in a single sample box.

89% said that an accompanying coupon would increase the value of a mailed sample box.

84% said that they’d likely log onto a Web site and sign up to receive samples if they got a post card from the USPS driving them to the site.

Hey – look at us – we do PURL’s, we are NOW a marketing firm!

Thursday, February 18th, 2010

Thought that this article, published by WhatTheyThink.com, tied in nicely with my recent post on 2010 planning, where I wrote:

“Printers will be scrambling to re-invent themselves. Hey – look at us – we do PURL’s, we are a marketing firm! Look over here – we do e-Brochures, we are multi-media experts! Hey – we have mailing in house – we are now data experts! Look – our pre-press department is slow – we can design that for you! This re-invention will create a confused market place. Who are THE experts in any given arena? And, more importantly, how will the client know the answer to that question?”

I agree with Dr. Joe – it is easy for printers to reinvent themselves when the going gets tough – I have seen a lot of that in my local market – some printers even going as far as to change their home page to promote eBrochures instead of promoting the products (printing) that define who they have been for decades. Margie Dana (another link below) hits the nail on the head – we need to be proud of our core competencies and build upon them by hiring professionals – not merely repurposing some existing prepress operators who were not getting the full 40 hours. The company I work for (CGX) has hired those pro’s – we have built upon our position as a leader in print by creating a stand alone technology and solutions group, we have hired top-tier designers to help our clients,  and we have assembled a team of fulfillment experts to round out our offerings.

Enjoy!

Dr. Joe Blog

Marketing Services is the Easy Answer, Just Like Buying New Equipment Always Was

By Dr. Joe Webb
Published: February 17, 2010

Throughout my career, I have always heard that print is a commodity, that there are too many printers, printers always have the same equipment, and that printers don’t know how to market. There are many more, and I’ve dealt with all of them at various times.

This week, I was reminded of the issue because of a blogpost by Margie Dana, which happened to echo my general sentiments about “marketing services” and printers. What she describes, but may not have realized, has an economic underpinning. Businesses are defined, whether they want to be or not, by their major capital investments and their history, all of which combine with other factors to create a culture that is detected by others, even on their first interaction, even if they cannot articulate it. Therefore changing that definition is difficult.

We also know that in surveys that we have done in conjunction with the economic webinars that the business conditions of printers that state that they are marketing services providers are just as bad, and sometimes worse, than printers who do not. I have rarely found that printers who say they are marketing services businesses have any significant or sustainable economic advantage. We don’t know how the early adopters of this monicker initially performed. Nor is there a good set guidelines of what clearly separates a marketing services business with printing equipment from another business with printing equipment alone. A recent post to the WhatTheyThink peer group makes an attempt.

I’ve already explained somewhere in these pages that print is not a commodity (a commodity is a raw material that is combined with other things to create something quite different, which makes print a processor of commodities, but not a commodity itself). The marketplace has been correcting for the number of printers for years, forcing the net exit of more than a thousand a year for a decade and a half. Technology has narrowed the variability of the printing process and its operators, and instead stored essential and repetitive knowledge and craft skills in software. This created a predictable, rising, and reachable level of acceptable mediocrity that nearly all printers could achieve. (Regarding technology and craft, just think that almost every time you click a dropdown in Adobe PhotoShop, it’s probably something that would have taken more than an hour in the 1970s, used lots of film and chemicals, and would have billed out at $35/hour, plus materials).

The old saw about printers being involved in the production of sales and marketing materials for the entire economy, but printers not knowing anything about marketing seemed pretty astute at first hearing. It minimized the core capabilities and innate knowledge that our industry’s entrepreneurs and risk-takers used to profitably survive in the markets at that time. I always found it to be quite the paradox in the 1980s and 1990s when executives of money-losing tech companies would lecture printers about their inability to market. The printers had long track-records of being profitable and supporting generations of family members. The tech companies had trouble surviving from quarter to quarter. The marketing efforts that those printing organizations used at that time were appropriate for their marketplaces at that time. They are not the skills needed this time, because those marketplaces no longer exist in the same way or form.

The reason marketing services is not a panacea has a similar pattern to the way the industry made its equipment investments. For almost all of print’s entire history, there were limited numbers of early adopters of new technologies. In the ’80s and early ’90s, these folks would joke amongst themselves and their risk-averse peers that they were at the “bleeding edge of technology,” a recognition of the marketplace experimentation they were engaged in, and that it often included a period of economic loss until they got it right.

After the adopters were done, other printing organizations would jump on the bandwagon. As some would tell me, “we’ll let them take the arrows and the gunshots, and then we’ll jump in.” There was a mimicry, a keeping up with the Joneses, that was involved in the technology investments that printers would make. This was perfectly sane and rational: prior capital investments would usually have long lives, capital was scarce and had to be used wisely. The market was growing, which meant that there was enough business that could be competed for on a profitable basis unless one made big mistakes, even if that profit was often limited. So if a 28” press was hot, the reason was because it had been proven as safe to buy because the market for its output was proven by other printers the buyer knew. This is how our industry went from letterpress to offset, hot type to phototypesetting, film to direct-to-plate, and many other changes. This has changed, however. Consolidation means that there are fewer independent business owners that can emulate each others capital purchases. Technology changes so rapidly that the marketing life of the equipment is often less than its funtional life.

The problem with marketing services as it is often practiced is that it must co-exist with significant capital investment in print production equipment. Those investments still dominate the culture and operations of that business.

Unlike a bad equipment choice, there is no downside risk to claiming a business is in marketing services and being wrong. No one has to put a load of their own money, or agree to a bank’s conditions, to say they are a marketing services business. That alone would be a barrier of entry to the business, such as preventing a printer from saying they had a heatset press in their plant because they would hire someone to stand next to their AB Dick 360 holding a hair dryer. Capital investment would create discipline to claims, as well as making the differentiation clear to everyone. If I claim to be a medical doctor and start seeing patients, I can be arrested. If I claim to be a marketing services provider, no one will notice.

The real issue is credibility. How does a client know that they are dealing with a marketing services provider, and not “just” a printer? They will know it because the printers experience in marketing services will come from using the tools of marketing services themselves. Consulatitive selling, yet another buzzphrase, is not just telling people what to do and figuring out what freelancers you can assemble and markup their individual billable tasks.

Marketing services is not part of the printing culture, at least yet. So many of our great companies came from entrepreneurs who had print production insights that others of their time did not. Those advantages were right in those times, but now must compete among media alternatives that have advantages unique to themselves.

That competition is not always easily understood unless all of a business’ scarce resources are devoted solely to that cause. For that reason, I have believed that any marketing services business should be a set up as a standalone business, separate from the printing organization, with its own investment, management, and financial measurement. This prevents falling back to the familiar safety of printing capabilities (as in “we need to get some sales activity because we have a lease payment due for the press, so be more aggressive in estimating the next few days”). The shift to marketing services has to be made knowing one can’t fall into a safety net; that’s often more difficult for the owner than it is for everyone else.

Marketing services is a new culture, moving from a billable task or job relationship that is invoiced as completed like print, to a longer-term retainer relationship that is comprised of many services, and billed monthly, quarterly, or annually. It needs to stand alone because the culture and pace of the business is radically different, which means the staffing must reflect that difference, too. But the first hurdle is always to use the tools available in the marketing services business for one’s own business, and use it in a way that proves competence, demonstrates skills of wide range and insight, and makes marketing services more than a new business card.

Ten Ways to Mix Direct Mail and Social Networking

Thursday, January 21st, 2010

(Luckily, I have been slammed with new client presentations which require an incredible amount of pre-planning and research. So I have not had the time to write anything personally – although I have received some great questions about paper, ink, the Lacey Act, and how “green” is electronic marketing vs. print. I will be touching on all these when time permits, but in the mean time I will keep re-posting articles that I have found to be relevant to me or my clients.)

Ten Ways to Mix Direct Mail and Social Networking

If you’re like many mid- to large-sized businesses today, you’re probably experimenting with online customer communities. But smart marketers realize that no single channel should be relied on to reach consumers. So we’ve decided to offer a few tips for those of you looking for fresh ways to mix your mail, digital and other media to promote an engaging marketing message.

Remember: In these new forums, community is content. By leveraging contributions from your customers and promoting interactive features on your Web site, you can revitalize direct mail content. Consider, then, these 10 ideas:

  1. Make a direct-mail piece a membership card to your exclusive community – Mail recipients a unique code they can use to gain access to a members-only area with exclusive offers and information.
  2. Surprise them with pertinent mail offerings — Despite what some think, Web-savvy customers do enjoy relevant mail offerings. Drive members from the computer to the mailbox by letting them provide their mailing addresses in exchange for special offers – coupons, product samples, etc. — made exclusively through the mail.
  3. Get members to nominate their friends – Every page on your website should have an option for visitors to share it with a friend. Expand that with the option to key in a mailing address. Members of your community can nominate friends to receive a membership card by mail or kick off a members-only coupon.
  4. Create a contest – Invite members to write a slogan, upload a photo or share a relevant video. Use direct mail to invite prospects to go online, submit their entries and see what others have contributed. Arouse their curiosity and let members provide the content.
  5. Turn contest entries into direct mail – Have members of your online community vote on content, such as photos submitted by other members. Publish winning entries as a calendar and send it out via direct mail.
  6. Create a greeting card promotion – People love to send greeting cards to their friends, so make it part of your ongoing campaign. Give members a palette of creative greetings with images and slogans that relate to your business. Enable them to personalize the greetings and specify a mailing address. You do the mailing.
  7. Stage special online-only events – Drive direct-mail recipients to an interactive webcast or chat session with your CEO or a product-line visionary. Only visitors with the special tracking code on the mailer can participate. That makes the event special and gives you a way to track response.
  8. Rock the vote – Customers like to learn what other customers are thinking. Launch a survey or poll and promote it to your mailing list. Recipients can vote online and register to see results. You can even distribute results as a mailer.
  9. Tease them – Post a “Top Ten Tips” list and promote some of the items via direct mail. Drive recipients online to see the tips they missed. You can do the same with winning entries to a contest or even with advice submitted by your members.
  10. Take to the airwaves – Start a series of audio or video podcast interviews with thought leaders in your field. Burn the first five recorded programs on CDs and mail them as promotions. Invite recipients to visit your website and register to subscribe to future programs

By looking to your growing online community as a source of material, you can unlock treasure troves of new content to feed your direct-mail campaigns.

(originally published by Deliver Magazine and Written by Paul Gillin who is an author, speaker and writer who advises businesses on online marketing. He is the author of The New Influencers: A Marketer’s Guide to Social Media and the newly-published Secrets of Social Media Marketing.)