Q. Somebody told me that you can’t send unsolicited faxes. My catalog company does a lot of follow-up fax solicitations to our customers. Are we breaking any rules?
A. Not yet. But don’t spread the wealth beyond those who already have a relationship with your company. And keep watching the Federal Communications Commission, because this past Sept. 12 it asked for comments on ways to “enhance consumer privacy protection.” Seems there are some concerns about “new telemarketing techniques,” especially “auto-dialers, prerecorded messages and unsolicited facsimile advertisements.”
Q. I want to spend more on our Web site, but my boss keeps reminding me of all of the fiascoes in the last couple of years. Can you give me any ammunition to get more funding for our Internet venture?
A. What, your boss isn’t impressed with the billions of dollars lost in Internet adventures? I’m sure you’ve reassured him you’re making a responsible investment that will be carefully monitored. After all, those spendthrifts didn’t tend to come from the real direct marketing industry, as is proven by the DMA’s latest State of the E-Commerce Industry Report, which notes that 62% of respondents said their Web site was profitable in 2000.
However, forget the old argument that this method of acquisition and customer leveraging is cheaper. Most of us have learned that, to get Internet buyers to act, you have to mail them anyway. So that scratches the mailing savings.
What might swing a boss’s thinking is that those who purchase through multiple channels spend loads more, up to four times that of single-channel buyers. Plus, if you add some bells and whistles to the site, those who use the additional content tend to be much more loyal. That leads to a lower retention cost.
Q. It seems like everybody is talking about the huge number of Internet names they’ve acquired from their Web sites. We, too, would like to increase our customer/requester mailings, but our site name acquisition is pitiful. What are we doing wrong?
A. Not going for the kill! This is no time to be subtle. Use a pop-up that requests registration/sign-in, but not a requirement for ordering. We don’t believe in making registration a criterion for ordering. Why make it difficult to buy?
Hate pop-ups? OK, stick your registration request in the upper right-hand corner with an incentive, like 10% off the first Internet purchase or some other special deal associated only with registration. Some things never change, and the upper right-hand corner gets seen in this environment first — as it does in printed catalogs. Don’t just ask for a sign-in on the home page; put it in a strategic location throughout your Web site. Train your order-takers to do everything in their power to gently extract the catalog code from buyers.
Q. We are a business-to-business mailer. I am constantly being nagged by my superiors to be in more contact with our customers. The circulation manager tells me we are already pushing it by mailing our catalog every six weeks. How do I get my bosses off my back?
A. You don’t. Instead, you show them how clever you are by finding a host of ways other than catalog mailings to stay in touch. Though you do not expressly say so, you probably have Internet and phone campaigns under way. Make sure you’re getting the most from these by:
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Using your Web site to announce upcoming specials and product introductions.
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Providing truly valuable, regular information and opportunities through e-mailings.
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Following up on recently sent catalogs with service-oriented phone calls.
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Using telemarketing to nag those who have once bought but have fallen by the wayside.
Then, once you’ve conquered the basics, move into areas of contact that you might not normally think about:
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Ride along with an offer in warranty expiration notices (or create your own notices if they don’t yet exist).
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Design offers for billing statements.
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Put offers in outgoing packages. (First determine who opens these packages. This works best if the person who opens them is the same as the one who orders the product.)
Not every contact should be a sales call. Also consider sending holiday thank-you cards to the highest-tier customers. On invoices, add a note of thanks for the number of years (and state the years) that the customer has dealt with you. Look at every contact you now make with the customer and find a way to turn that into an opportunity to either sell or reinforce your relationship.
Q. It’s my job to keep coming up with new strategies for our mailings. Usually I get a lot of ideas from attending trade shows. But with all the budget cuts, I’m not getting to many shows. How can I continue to get inspiration?
A. Turn to the Direct Marketing Association’s Echo Awards, a sure source of great ideas for 74 years. The Echoes, which many consider the industry’s highest honor, are based on creative, marketing strategy and results. Therefore, the ideas these awards help stimulate will not only look good creatively, but also on your P&L. There are plenty of campaigns to choose from, all filed by product or service. So it’s simple to find what’s relevant to you.
Visit the DMA’s headquarters at 1120 Sixth Avenue in New York to view the past three years’ worth of samples or call 212-768-7277 for info on available CDs from 1998 to 2002. The library is free to members; the CDs run from $99 for members to $149 for non-members.
Got a question? Send it to Katie Muldoon at 18171 S.E. Ridgeview Drive, Tequesta, FL 33469.
KATIE MULDOON is president of DM/catalog consulting firm Muldoon & Baer Inc., Tequesta, FL.
