Tag Archives: digital marketing

Direct Mail – not just for dinosaurs …

TRexThis is just a small addendum to my post on Direct Mail last week.  I found a fascinating Millward Brown case study conducted for the Royal Mail which I wanted to share.  In Using Neuroscience to Understand the Role of Direct Mail, fMRI scanning was used to understand how the brain reacts both to physical and virtual stimuli.

The headline results from this study, are:

  • Tangible materials leave a deeper footprint in the brain
  • Physical material involves more emotional processing, which is important for memory and brand association
  • Physical materials produced more brain response connected with internal feelings, suggesting greater “internalization” of the ads

The Royal Mail’s James Kitovitz (Insight Manager) said:  “They successfully turned cutting-edge neuroscience into a practical marketing project, and delivered completely new insight identifying fascinating differences in levels of brain engagement for the two types. We have put the findings at the heart of our communications about the intrinsic power of direct mail, and how physical media have a place in any fully rounded marketing campaign.”

The research is fascinating and illustrates the real need for a fully integrated approach, using both physical and digital marketing material.

Thanks to Direct Mail Manager for pointing me in the direction of this article.

Whether you agree or disagree about Direct Mail’s role in the  marketing mix, or if you have a story to tell, just reply below and let’s have a chat about it…

Victoria Tuffill – victoria@tuffillverner.co.uk   01787 277742 or  07967 148398.   Have a squint at  our website.  And yes, we’re on Linked In, and Twitter

Data … big data? Or back to the Dark Ages

Back in the 80s, there was this thing called “junk mail”.  And it was so called because it involved blanket mailing a mass market with little or no targeting. In other words, the message was irrelevant to a huge proportion of the recipients, so just got thrown in the bin.

Then we discovered targeting, analysis, insight and profiling.  And the direct mail messages become more appropriate, relevant, cost effective, and considerably less irritating to the consumer.  A classic case of less was more.

I remember the day that “personalised laser text” became available, and we were able to send out mailings with personally addressed letters which referenced the prospect’s other interests.  Letters that said (something along the lines of)

Dear Mrs Bloggs,

Because of your interest in the world’s wild places, we wanted to introduce you to our our brand new books which demonstrate the extraordinary and dramatic nature of our own planet earthfrom volcanoes to earthquakes …. 

The letter, including that simple piece of “personal” text, was enclosed into a small envelope with a miniscule brochure and mailed out.  It achieved over three times the response of the standard pre-printed control direct mail letter which was mailed in large envelope with enormous, heavy, expensive brochure

But now the European Union is proposing to take us back to the Dark Ages and the days of blanket mailings.  Their new proposed legislation is currently in progress, and will impact every level of prospect marketing.

It’s quite clear that the increasing use of new technology makes revisions to current data law essential, particularly given consumer concern over privacy which has not helped by our own government’s appallingly cavalier behaviour and carelessness with our personal data.  (Some of the breaches committed by government departments would have, if committed by the data industry, have caused severe punitive measures.  Somehow when it’s the government which gets it wrong, the whole thing just quietly gets swept under the carpet. Rant over…)

However, in addition to technological and social media impact, the traditional media channels will suffer significant difficulties.

A brief summary of the key areas is listed below:

  1. Explicit consent to be granted by the recipient prior to any direct marketing – either by word or by action.  In practice this means that where consent is required, organisations must ask for permission to process data.  Without such explicit permission, marketing prospects will not be allowed to receive mailings or cold telemarketing calls.  Current legislation allows such mailings and / or calls to be made unless the prospect has actively opted out.
  2. The customer has the “right to be forgotten” – ie they can insist that their details are emoved from a database in their entirety.  This is entirely impractical.  Once deleted, when or if that customer appears again on the database (if, for example, rented from a third party list, or in the event that the customer makes another purchase), the customer’s request for deletion will have vanished.  So in practice, the “right to be forgotten” should trigger the inclusion of that customer into a ”suppression” or “do not mail” file so that there is no inappropriate future contact.
  3. Profiling or segmentation may not take place without consent.  This will have serious impact on those data businesses which hold shared transactional data from multiple companies, or geo-demographic data, or indeed simply work with marketing profiling models.
  4. List broking is likely to require significant changes to comply with new legislation.
  5. The definition of personal data has been extended to include, potentially, IP addresses and some cookies.  Quite apart from the fact that an IP address or cookie may be used by a number of individuals, this will make it much more difficult for businesses to analyse and profile web activity.  The impact on digital marketing will be significant and, arguably (given that there will be no ability to provide relevant, targeted marketing) counter-productive.
  6. Cost:  DMA (UK) Ltd research shows that complying with the proposed regulation could cost companies an average of £76,000 each. It estimates a total loss to UK industry of up to £47 billion in lost sales.  These costs come, in part, from:
  • Companies with 250 or more employees will need to appoint a data protection officer
  • Under current legislation, subject access requests can be charged at £10 each.  Under the proposed new legislation, this charge is to be eliminated. This is likely to result in increased numbers of requests.  In addition to the lost revenue from existing volumes of which is likely to increase the number of requests, frivolous and serious.
  • Every organisation that suffers a data security breach would have to notify Information commissioner within 24 hours
  • Right to compensation from the controller or the processor in the event of processing activity causing damage to a person
  • Increased fines / sanctions to be imposed

On the face of it, the picture looks pretty bleak.  But there’s no need to despair just yet – there is time to provide our views on required adjustment, amendment and refinement  before these proposals are ratified and become law in the UK.

But for that to happen, businesses need to act now.  There is a fantastically detailed amount of excellent information to be found at the DMA (UK) Ltd.     So have a look and check to see how the current proposals are likely to affect your business and your marketing.

Then we need to write to our MEPs – and the DMA has made this easy by providing this link which has all the vital information, including who your MEPs are.   We need to ask them to fight for the fair interests of business.

We’re all for sharing knowledge and information and enjoy a healthy debate, so if you have any questions, views, tips or knowledge, please  just “reply” below. Victoria Tuffill – victoria@tuffillverner.co.uk   01787 277742 or  07967 148398.   Feel free to visit our website.  And yes, we’re on Linked In, and Twitter

Multi-channel marketing, data … and fly fishing

As  keen fly fishers, we’ve travelled to a variety of rivers throughout Scotland, Wales, Ireland and, more exotically, Iceland and Russia for Atlantic salmon, Arctic char,  sea trout, brown trout, greyling and any other species that is prepared to jump on the end of our lines.

Despite my propensity to fall into rivers (tricky in chest waders which can fill up fast if you get it wrong), the experience has always been delightful.  Not just for the fishing, but also for everything that surrounds it – good company, the sight, smell and sounds of the river,  the scenery, the wildlife, and the good company that almost invariably accompanies a week of fishing.

So what does this have to do with marketing? Actually, pretty much everything.

Understanding your customers

Firstly, whether you’re fishing or marketing, you need to understand your prey and their circumstances.  Is the river in spate?  Or is it a dry ditch?  Are there likely to be problems reaching the fish?  Or indeed, landing them?  In fact, where are the fish?  What are they doing?  And how many are there?  Are they migratory?  If so, when will they run?  Are they a good size?  Are they fat and healthy, or diseased and thin?  Are they young or old, male or female, shy or aggressive?

Reaching your customers and prospects

Then you need to consider how to reach them.  Is it tricky to cast?  Is it too deep to get in and wade to get closer or a better angle?   What’s the wind direction?  Is the water too warm or too cold?  Is it a long, arduous climb to the hill lochs?  If so, is the end result worth the effort?  Having invested the time and energy in climbing the hill, is it a good idea to spend a little more time up there?  Perhaps even pitch a tent and spend a night or two to catch the dawn and evening rises and make the most of the opportunity?   How can you best stalk the fish in the clear waters of a chalk stream? How can you avoid the weed – either before or after hooking a fish!

What are the fishes’ motivations for taking a fly?  Is there a particular size or colour that will appeal?  How should it best be presented?  At what angle, depth and speed?  How frequently should you cast over a fish?  Especially if you can’t see it so can’t be absolutely certain that it’s even there.  And what do you do if a fish takes your fly, but not properly?   Vary the speed?  The depth?  Change the fly?  Go for something larger?  Or smaller?  Or a different pattern?

In addition to all of that, there’s a need to identify and understand the competition – Seals?  Otters?  Commercial fisheries?  Bears, or other predators?

Depending on the answers, you need to use appropriate and varied techniques to catch your fish.  For example, sea trout are shy creatures, best caught at night.  This means fishing in the dark, so you need to do your research during the day – spotting fish where you can, identifying likely fish-holding lies, working out the length of cast you’ll need, the speed and depth of the water.  That way you have the knowledge you need to have a fair chance of getting your fly out to the right place and fishing it well.

In a chalk stream where the water’s very clear, you need to stalk your brown trout, making sure you can’t be seen, then lay the fly gently upstream on the surface of the water so that it drifts right over their nose and becomes irresistible.

Salmon are different again.  Here you need to be able to read the water and understand where the fish will lie, then make sure you put the fly where they can see it and make them want it.  And it has to be the right fly, moving at the right speed and in the right way.  And when one takes, you don’t “strike” in the same way as for a trout.  Actually, Atlantic salmon don’t even eat when they’re in the river, so they need to be enticed to take your fly for other reasons.

Understanding your customers and prospects

Though it might be more accurate – and certainly more tactful – to refer to your potential customers as prospects rather than prey, all these issues equally impact marketers.  What’s the economic climate?  How much money is out there for consumers to spend on your products?  How much effort and budget is required to acquire a particular customer – and are they worth it to your business?  Where do they go to buy?  Online?  Over the telephone?  Bricks and mortar?  Do you need to segment your marketing to appeal to different lifestyles and demographics?  And is your product a must-have?  If not, how can you encourage consumers to buy – particularly in a poor economy, when your competition is as hungry as you so you need to fight harder to win – and keep – customers.

Stage one is understanding your prospect.  Who are they?  Male?  Female?  Young?  Old?  Parents?  Single? Homeowners?  Students? Living at home?  Renting?  Where are they in their lifecycle?

Where do they live?  What’s on their mind?   What, why, when and how often do they buy? Is there a seasonal bias? What’s their disposable income?    What do they read or watch on TV or online?  What technology do they use?  Tablets?  Smarphones?  Smart TVs?  Or paper?  Or all of those?  Do they interact with social media?  Consumer or business?  What are their hobbies?  Are they in debt?  And so on.   Whether you’re in retail, or publishing,  financial services or telcos, technology or utilities, charities or even politics, the above issues all need to be considered within a marketing campaign.Does your product appeal to a mass market or a specific segment of the market?

And that kind of knowledge requires data – both historic behaviour and research from your own customer database, also data from third parties, which is readily available and can provide you with a wealth of geo-demographic, lifestyle, behavioural, purchase history, financial, risk and fraud data.

Of course, data’s of absolutely no use at all unless it’s turned into meaningful insight that your business can use to allow intelligent, informed decision making.  Not only that, but the ever-growing volume, sources and complexity of consumer data can be overwhelming, so it’s essential  that effective, relevant and actionable data and insights are identified for strategic  and selected to provide the best data strategy for the business throughout the customer lifecycle.  The basic goal must be to use the right data to have the right customer conversations at the right time through the right channels.

Once you know enough about them, you can start to understand the size of your market, and where to go to find prospects who look like your own customers and consider how best to attract them.  Which will be the subjects of upcoming blogs.

One final thought.  The first time you visit a river, it’s helpful to take a ghillie, who will know where the fish lie, and how best to fish for them.  Listen to every word they say and all the advice they give, so that you can learn as much as you can for the next time you want to fish that – and other – rivers. Ghillies are a canny breed, so they’ll know what you’re doing, but will generally be helpful.  

The same is true of marketing.  At TVA we are happy to act as ghillies or guides – so if you’d like to discuss how you could use and benefit from advice on data or any direct marketing channels, please don’t hesitate to give me a call.  As ever, if I can help, I’ll be happy to.  If not, I’ll make sure I point you towards people who will provide sensible, strategic advice.

Victoria Tuffill,  Partner, Tuffill Verner Associates – Multi-channel and direct marketing

Tel:         +44 (0)7967 148398  /  +44 (0)1787 277742

Email:     victoria@tuffillverner.co.uk      Multi-channel consultancy       Linked In      Twitter

 

Why do social media “experts” talk such guff?

Why do so many social media “experts” talk such guff?  A couple of weeks ago I was at a conference, where the focus was very much on data and how it could be used to help Telcos prevent their customers paying late (or not paying at all) and/or once in debt, collect the most overdue money, most quickly, at the lowest cost – all the time doing their best to treat their customers fairly.  Clearly a challenging combination.

An interesting inclusion in the programme was a chap who came from a social media consultancy.  He was asked to talk about how social media could help businesses understand their customers well enough to prevent them from falling behind with their payments, and, in the event that they fell into debt, whether social media data could be used to identify their ability and intent to pay.

I had hoped this presentation would be fascinating and full of insight.  To be fair to the guy, his social media generic overview was fine. But when it came down to the nitty-gritty of whether or not, and if so, how social media data could be used in a payment behaviour or collections environment, he frankly floundered, and failed to answer even one of the three questions he had been tasked with.

At the end of his presentation I walked downstairs with a fellow delegate.  I didn’t know him, but I asked him what he thought.  His answer was a single word:  “Irrelevant”.

And that’s the problem.  That one poorly targeted, ill-thought out presentation convinced a large group of Telco delegates that social media has no part to play in their business.  And my view is that this is simply not true.  Whether or not it’s possible, legal or even advisable to use social media data in a collections environment, and whether or not there is anything more than marginal benefit to be gained from doing so,  there are certainly opportunities to build  two-way, engaging relationships with your customers, and obtain useful data from them in the process.

If nothing else, that approach gives you an opportunity to encourage your customer to feel positive about you and your brand, making it more likely that your bill will be higher in their hierarchy of “must-pays”.  Especially in the case of mobile networks and phone providers, where it is highly likely much of their social media interaction will be conducted through mobiles.  And these things can be measured – simply compare the payment and spending behaviour of those of your customers who engage with you on, say, Facebook to those who do not.

Use the social media platform to gain information from them, obviously ensuring that your collection and use of such data is compliant.  Make it fun for them to tell you which networks or mobiles they’ve previously used, do some research on how they would rank them, how they use their phones, proportion of personal to business, gain further information on how the phone is used in business – the answers may not be entirely honest, but, with caution, you can use that data to identify likely switchers and even, in some circumstances, likely payment or contract defaulters.  It is worth noting, however, that the time to build the relationship is BEFORE the payments start to be missed – in other words from the moment the application is approved.

What is crucial, and, I think, not understood, is that social media data, communication and engagement are not ends in themselves. They are simply part of an ongoing communication programme with a brand’s customers and prospects.

It is for each individual company or brand to adopt a strategic approach which identifies its business goals, and develops – and measures – the combination of communication channels appropriate to achieve those goals – which could be telephone, social media platforms and forums, email, websites, mail, blogs, updates (digital and print) on news/technical developments/new product, downloads, apps, face to face and so on.

But I think a core difficulty for many businesses is in identifying so-called social media “experts” who look at the subject strategically.  I’ve met both types of animal.  The ones who do really are very good indeed – the bad ones do an alarming amount of damage and harm – both to the perception of social media and, in the worst cases, to the customer’s brand and image.  To identify the good ones, make sure you talk strategically to them, ask them pertinent questions – if they don’t understand your business, your issues, or can’t answer you, or sidestep, or generalise … find someone else!

We’ll welcome your thoughts or comments on this post – and if you need any help with your communications strategy and/or activity – across channels or through specific channels – please don’t hesitate to give me a call.  If I can help, I’ll be happy to.  If not, I can at least point you to someone who will provide sensible strategic advice.

Victoria Tuffill
Partner, Tuffill Verner Associates
 
Tel:         +44 (0)7967 148398  /  +44 (0)1787 277742  
Email:     victoria@tuffillverner.co.uk
Web:       http://www.tuffillverner.co.uk

Victoria Tuffill is a direct marketing consultant with over 30 years experience. She founded Tuffill Verner Associates consultancy with Alastair Tuffill in 1996. She is also founder and Director of Fraudscreen – a data tool that assists in the prevention of 1st party fraud. Her experience ranges across businesses including publishing, home shopping, insurance, utilities, telcos and collections.

© Victoria Tuffill and Tuffill Verner Associates, September 2012. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Victoria Tuffill and Tuffill Verner Associates with appropriate and specific direction to the original content.

So what’s new about multi-channel marketing?

multi-channel imageWell, I know I’ve been in marketing for a long time. But I can’t help raising a wry smile when I hear today’s up-and-coming extol the virtues of this or that media channel, and propose it be used as a marketing tool. Occasionally (too rarely) they even suggest testing and measuring results. And the listener is left with the impression that direct marketing is all their very own invention.

There is no doubt the media opportunities have evolved beyond recognition since the direct marketing of the ‘90s. As well as traditional channels like direct mail, loose inserts, press ads, telemarketing, package inserts – all of which are, when appropriately used, an effective part of the marketing mix – we can include email, websites, e-commerce, mobile commerce, apps, social networks, blogs, e-newsletters, microsites, links, PPC etc etc.

And it’s not only the number of channels that has expanded. So has the number of vessels which deliver our communications every day. Technology’s exploded into smartphones and iphones, tablets and ipads, readers, smart TVs, pcs, laptops, Macs. Print media is also evolving – with more advertising in return for free information, QR codes to integrate with new technology, and a greater degree of personalisation within customer communications.

To cope with the diversity and range of channels, marketing platforms are evolving to help businesses integrate their marketing and make it customer-friendly.

Of course the prolific nature and ongoing evolution of marketing channels drives a correspondingly diverse number of “experts” who offer a range of “optimisations” – search engine optimisation, conversion optimisation, click-through optimisation, social media optimisation and so on.

But what I find so interesting is that, despite the new and continuously evolving channel opportunities, the basic principles of direct marketing are unchanged. It’s still a science that involves data, analysis and insight, media choices, creative and design, pricing, branding, product, offer, research, communication, delivery and customer service.

And it’s still about identifying and understanding the customer. Testing data, channels or media, offers, products, new ideas, new creative / copy, response and delivery mechanisms is still an essential part of the process.

And, vitally, it’s still about identifying and measuring the business’s key metrics ongoing to provide insight and refinement of ongoing, healthy and integrated activity.

Certainly there are significant shifts in consumer behaviour – they are more sophisticated, with a shorter attention span. They are hit by multiple messages about multiple products and services from multiple businesses via multiple devices. The lines between above- and below- the-line advertising have blurred to the point of oblivion – which does make the measurement of individual media channels a little more challenging.

But ultimately, the aim of any successful business has to be to deliver appropriate and seamless services, products and communications to its customers, while allowing the customer to deliver communications back through the channels of their choice. And the company that can achieve that is the company that will succeed, both now and in the future.

by Victoria Tuffill 30th August 2012

Victoria Tuffill is a direct marketing consultant with over 30 years experience. She founded Tuffill Verner Associates consultancy with Alastair Tuffill in 1996. She is also founder and Director of Fraudscreen – a data tool that assists in the prevention of 1st party fraud. Her experience ranges across businesses including publishing, home shopping, insurance, utilities, telcos and collections.

© Victoria Tuffill and Tuffill Verner Associates, August 2012. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Victoria Tuffill and Tuffill Verner Associates with appropriate and specific direction to the original content.