Search results matching tag 'direct marketing'

Brokers Done to a T

1271576 — Wed, 18 Nov 2009 09:22:00 GMT

Shock, horror...someone has been selling mobile contract data, allegedly owned by T Mobile, onto other network providers. Brokers, those despicable middle-men working in the dark shadows of the marketing world, are implicated in the scandal. Poor T Mobile customers have been 'cold-called' (a phrase spoken with unmitigated disdain by the news reporter I listened too) around the time that their contracts came up for renewal.

The implied 'crime' was that this data is private, and that the people cold-called did not give their permission for marketing calls. This is of course possibly true, but I doubt it. If T Mobile have not covered themselves in the small print somewhere, I would be most surprised, because data is an asset, and everyone should give themselves the scope to leverage that asset if they feel the need. I would imagine the brokers concerned, whoever they may be, would have made some sort of check, because otherwise they are cretins of the first order.

Every broker I have ever worked with, when faced with data such as this, would have asked several questions.

1) Who owns the data?

2) Is it opt-in data or opt-out?

3) What restrictions are imposed on selling it?

The third question is probably the interesting one. If this data belongs to T Mobile, why would they want to sell it to their competitors? Either they are so desperate for cash that they have to give customers away to get it, or the person offering the data is pulling a fast one. In my experience, when data like this becomes available, the data owner is very careful to make sure their competitors don't get it. They want to sweat their data asset a bit, to complimentary businesses, but they are not looking to shoot themselves in the foot.

An unscrupulous broker may not have questioned the golden egg falling in his lap. Make no mistake about it, this sort of data is like winning the lottery. Call centres are desperate for warm data. Big money would have changed hands for this data. I have not seen any comments from T Mobile yet, so we cannot know whether this was an officially sanctioned data sale, or a CD walking out the door in someone's pocket, but my concern is that, yet again, the data industry looks like a bunch of cowboys.

When this story hit the fan, I would have hoped for a response from the data owner pointing out that they had every right to sell it, because they did the opt-in/opt-out process properly, taking the wind out of the press furore over unsolicited calling. They might have had some uncomfortable questions to answer about why yhey sold their own customer database, but it would have been chip paper tomorrow...sorry, recycling.

This is a good chance for the DMA to make the case for using professional brokers. I suspect such a person was not involved in this instance. I certainly hope not.

One-to-One Marketing goes 3D

1845437 — Thu, 05 Nov 2009 16:49:00 GMT

Lord Leverhulme famously said that “Half the money I spend on advertising is wasted, and the problem is I do not know which half”. In a downturn it is vital that none of the marketing pound is wasted and as planning director at Leeds-based direct response agency PCD, I can reveal how to be smarter with your marketing spend.

Whether you call it direct marketing or one-to-one marketing, the all important goal is to promote your message to your customers in a more targeted way. Achieving this goal becomes ever more vital as company boardrooms insist marketing teams justify their budgets and as such decisions, strategies and plans will become more customer data insight driven.

Digital opportunities and channels provide marketers with never before seen levels of interactions with customers and prospects. Integrating in a single process, for example via direct mail, sms, web or email, with levels of personalisation that are no longer restricted to simple variables but include imagery, product messages and copy to fit an individual customer’s particular purchasing habit and lifestyle, help to engage with target audiences.

Yes, this comes at a higher cost, however experience has shown that cost per pack whilst increasing is countered by an overall increase in conversion, lowering overall acquisition costs.”

To reflect this explosion in alternative on and offline media platforms, we at PCD have refocused the business and developed a 3D approach – data, digital and direct.

• Data means knowledge and provides insight, information and understanding which results in targeted planning, segmentation and a well defined strategy.
• Digital means one-to-one dialogue, delivering relevant and personalised comms. This means that the right message is being delivered the right way at the right time, both on and offline.
• Direct means accountable and results in brand building, generating response, measuring, learning and improving.

I believe that we needed to develop this unique 3D approach in order to provide clients with targeted methods to reach their consumers and increase customer value.

What’s different about our 3D approach is that you will realise it’s not just about sending complex mailing packs, building the biggest websites, sending the most emails or developing ‘flashy’ online campaigns. It’s about taking data and using it to understand your customers. It’s about understanding a customer’s journey with your brand, the touchpoints and conversations you’ll have and those you should have. It’s about segmenting data to target creative more effectively and then delivering campaigns that embrace and engage the customers.

This is all before a creative concept is hatched and means that clients fully understand their customers, allowing them to embrace and engage with them in a way they have not been able to do before.

I believe that our approach begins by understanding our clients data, the segments they form, the impact these segments can have on your business and then the creative message we can deliver, ultimately ensuring the right customer receives the right message by the right channel.

For more information visit www.pcdagency.com or telephone 01943 872505

Is the rush to embrace digital eclipsing the traditional?

2652554 — Mon, 28 Sep 2009 13:25:00 GMT

Digital digital digital – isn’t it wonderful?! With its power to engage, its speed, the huge choice and access it offers consumers and, not least, the vast opportunity it provides for marketers to get under the skin of prospects and customers like never before.

Well, a resounding ‘yes’ to all of the above and more. As marketers we must all learn to adopt and adapt to all things digital if we are to maintain currency, credibility and capability. Traditional DM agencies can no more afford not to have some kind of digital skills now than their above the line colleagues and, in the heady world of data in particular, digital’s role is rapidly moving from peripheral to central.

The richness and depth of the data that can be captured, analysed and manipulated takes us closer to real-time customer insight and understanding than ever before. Clickstream and web analytics are just a couple of the many tools now at our disposal to track consumer behaviour and preferences in minute detail. There seems to be daily coverage on some clever new way of using web, e mail and mobile data to better effect, eclipsing other channels in a frenzy of new technology-itis.

And at this point we need to sound a cautionary ‘But’. Yes, the speed of technological change in the digital channel is exponential and very, very exciting – of course, this brings its own challenges with almost instant obsolescence of the latest gadgets – but let’s not lose sight of the bigger picture. Data to drive consumer insight comes in all shapes and sizes – at campaign level, at channel level (including digital) and at customer and household level. Clever tools such as web analytics are excellent when well-used at campaign and channel level. The problem is that they only give a part of the picture, so whilst the digital channel and the data-rich benefits it brings are growing rapidly in importance, a little perspective can go a long way.

High streets may have suffered in the last few years but we still see millions of people browsing and shopping in-store every day of every week. Direct mail volumes may be dropping but there’s still plenty piled up waiting for us when we get back from holiday. Call centres are also still seeing a brisk trade for both sales and service, and for more complex, big ticket products (especially such as pensions and mortgages in the financial services market) many consumers still prefer the reassurance of dealing with someone face to face.

So digital, although growing very rapidly, is still only part of the whole channel mix. What’s more, most consumers will often use a mix of channels - sometimes over a sustained period of time – to make their purchase. Using data from all relevant channels and bringing it together at the customer level is where we get the real insight for improving communications and targeting.

So the value to be gained from data sourced from digital activity is enormous, but let’s not lose sight of the basic (and still valid) principles of what makes great direct marketing. By looking at the picture from the customer perspective the whole really does become greater than the sum of the parts.

Data Virgins

1271576 — Thu, 23 Jul 2009 13:44:00 GMT

Two recent news items have got me thinking this week. Firstly, the collapse of the infamous mobile telephone directory, using bought in data, and secondly the ASA rapping Virgin Media over the fingers for not using goneaway suppression. Both cases represent a certain naivety on the part of both organisations, albeit from rather different directions.

Just because data exists, it does not mean that we have a God-given right to use it. Mobile data is on the market from a variety of sources, but none of the people who own those numbers ticked a box saying they were prepared to appear in a directory. The most they did was agree to receive some unspecified third party communications as they signed up for whatever they signed up for. So, it was no particular surprise to me that many of them got rather cheesed off when the directory hit the headlines.

The trouble is, it seemed to be a surprise to the business concerned.

The Virgin case is slightly different, but it hits the same spot. They have data. Lots of it. They are one of the largest mailers in the country, and, as a customer, I recieve a lot of it. It is mostly tosh, and none of it has managed to explain to me how I can improve the service they provide, or get more out of it. In fact, the one thing I want them to tell me about, they have not even mentioned yet. As an XL customer (I believe this refers to the TV package I am on, rather than my girth) I used to receive the Seranta sports channels. I get Sky Sports through Virgin, and Setanta came 'free' out of the blue. Now it is gone. Am I going to receive the new ESPN channel free as well? Frankly, despite regular communication about my bill being ready for inspection, or other such fascinating missives, I have no idea. My son would like to know. Richard, are you listening out there?

However, I digress. Not using suppression is a cost call.You weigh the few annoyed recipients who can be bother to complain against the cost of buying the suppression, or doing the administration on your own goneaways. Naive, again. Suppression is not cheap, but annoying people is never sensible. Bad press like this is damaging. Not Gerald Ratner damaging, I will admit, but still a black mark.

But I fear this is symtomatic of an attitude to data prevelent in the industry. No one seems to care about the state of the data, as long as enough targets are reached. The objectives may be reached, within budget, but what harm is done to the brand around the edges?

Official: King Henry VIII was a home shopper

2123210 — Thu, 09 Jul 2009 16:19:00 GMT

Michelle Obama is a home shopper. The Queen apparently is too, as well as being a catalogue owner selling souvenirs at various palaces and stately homes.

But Henry VIII? He of the six wives, big girth and 16th century bloodthirstiness fame?

Now we must add 'celebrity home shopper' to this list of attributes.

Wandering around the 'Dressed to kill' Henry VIII exhibition at the Tower of London last week, I stumbled across a nugget. The glass cases featured armour and weapons that were custom made for the king way back in the 16th century.

Henry's PR was as a man of action who built his identity around his military and sporting prowess. Not surprisingly, the King of England wanted the best, most flexible, most fashionable armour - complete with enormous codpieces.

But he had to order it all from Italy and Germany.

Okay, so it's not likely Big Hal picked his armour from a catalogue or website but he was liable to return the kit, in true home shopping style, if he found he couldn't do handstands in it (a reliable test of good armour, apparently).

His other attempt at home shopping, when he hooked up with mail order bride Anne of Cleves, was a disaster. The Holbein portrait of Anne was said to have misrepresented and missold the product.

Now, where was the DMA's client complaint body, the Direct Marketing Commission, when Henry needed it?

Technology is the Fox that will kill the Golden Goose

1271576 — Tue, 07 Jul 2009 10:44:00 GMT

All industries evolve. Things change, develop, improve. Direct Marketing is no different to any other sector, and the major change of the last ten years has been the growth of information technology. Is this a good thing?

For me, the jury is still out. The first mailshot I organised, circa 1985, involved buying some labels, writing a letter, getting it printed and putting it through a franking machine. Post was king in those days. It seemed more worthy than other direct channels, and certainly more controllable. It required thought, and took time. Nowadays, on a bais level, armed with a few email addresses, you can whack out the same thing in a matter of minutes.

B2B direct marketing is not always massive. Most businesses are small, and most mailshots are in the hundreds, not the thousands. Of course there are big mailings, but there are not many companies that do things on a large scale. The temptation to DIY, on the cheap, has resulted in a commoditisation of the market. Marketing 'departments' are expected to achieve big things from their desktops, almost instantly. A database is no longer a difficult thing to build. Email addresses can easily be collected and stored, DIY style. And using them is so easy. This ought to be a good thing, but I am afraid it is not.

You can buy email addresses for peanuts. No one seems to worry too much about what they are, or who is going to open them. My inbox is full of all sorts, from the quick and dirty to the expensive and sometimes misguided. The science of direct mail has been transformed by the technology into a hopeless free-for-all. We all talk about web sites as the shop window, and making everything interactive, but the interaction is often not very satisfying.

I saw a job being advertised this morning for a Social Media Marketer. The new holy grail, I suppose. We are leaping on the next big thing before we have really conquered the last one. We have not used the new technology well. We have managed to discredit and marginalise what we now think of as snail mail. It is almost an irrelevance today...still there, but somehow old-fashioned and comparitively expensive.

In this recession, data quality will suffer everywhere. It was not great to start with to be honest, but there will be next to no investment in it at the moment. I feel a bit like John Major. We need to get back to basics. Good data, good creative input, clear objectives and professional execution. If not, in another two years, we will all be Twittering around like lost souls, wondering how life got so complicated, when really DM is simple.

List Broking in the News

1271576 — Fri, 26 Jun 2009 09:02:00 GMT

Since the kerfuffle about the mobile telephone directory, list broking is in the news. In the Daily Mail, the term is used with obvious distaste, as if the lists of numbers supplied to the company launching the directory were somehow unclean. The tone suggests dodgy deals done in shady corners, with reams of soiled paper appearing from under raincoats, and changing hands for bundles of used twenties.

I have my own concerns about the directory itself, but it is unfair to paint the list broking profession as the evil conduit in this project. Brokers simply put buyers and sellers together. The good list broker will understand the clients requirements, and suggest the best possible data, earning a cut out of the deal from the data supplier. I just hope the brokers concerned in this bit of business did their homework and thought about the possible consequences. Ditto the data suppliers.

Mobile numbers are required on all sorts of forms and applications these days. Usuually, if you look close enough, there is an opt out from direct marketing activity. But...is this direct marketing activity? As a directory owner, you could make a case for providing a service. The landline telephone directories operate on an opt-out basis - the only way to keep yourself out of them is to go ex-directory (and I am not sure that is much use anymore). So, is this any different?

Personally, I believe it is. As a list broker, you should look beyond the quick sale, and think of the consequences for the data supplier, and the industry beyond. The legality of the directory is being questioned, and consumer reaction to it is not positive. This may make mobile data harder to collect in the future.

This industry cannot help shooting itself in the foot

1271576 — Thu, 11 Jun 2009 15:20:00 GMT

Good grief, when are we ever going to learn? Your starter for ten, why is the direct marketing industry hated by the consumer? Because we have allowed their data to be treated with disdain and disrespect, that's why.

Spam, junk, confetti tactics, poor targeting...you name it, and someone calling themselves a DM professional has done it. So, in the middle of this wasteland of a recession, why not have a go at winding them up all over again?

Creating a mobile telephone directory is such a bad idea. No one, as far as I am aware, wants to be in it, so the company concerned has bought them. Some mysterious broker had one good sales month, and can now say goodbye to his database forever, I suspect.

Mobiles are personal. We take them everywhere, and as more and more nifty new handsets come out, with zillions of new apps (See, I am partially with it, chaps), we are taking out contracts and tying ourselves to our numbers more than ever before. The last thing we want is to feel that our numbers are going to be targeted willy-nilly by people we have not given our number too. Email spam is annoying but quickly deleteable. The mobile going off with unwanted calls or texts in the middle of a film, or in a restaurant, or whilst we are asleep, is going to really annoy people.

No one wants this directory. I doubt many people will use it. But with the headlines back in the Daily Mail, data and the use of data is back in the spotlight. Nice going people.

This industry does not need policing...it needs culling...badly.

Waitrose and Kitcatt Nohr have got the essentials wrong

1225254 — Wed, 27 May 2009 18:21:00 GMT

I'm a big fan of Waitrose and a customer for nearly 30 years. I'm also a genuine admirer of Kitcatt Nohr, one of the best agencies in London. So there was a double sense of disappointment when I received the new Waitrose essentials mailing fanfared in Marketing Direct yesterday.

To start with, I fear that it was one of those jobs where the format came first and the creative was then shoehorned to fit. Why else, for a concept focusing on 'the week', would you have Monday and Tuesday on one side and the rest of the week on the other? Oh, and I never understand why brands feature illustrations of fresh food when good photography is so much more effective.

There are more important flaws. If you are going to suggest meals, then please give the recipes. That means the ingredients and how to cook it. Saying "you can find the recipe for this delicious meal in store" is just annoying and people won't remember to do it. Besides, if you give the full recipe you encourage the shopper to buy all the necessary items on their next trip.

Worse than that, having taken up 7 panels with suggested daily meals, only 2 panels remain to feature no less than 56 essentials products! They are therefore reproduced so small, you have little idea what many of them are. I genuinely struggled to identify the product in column 1 row 3 on the Monday side. Or column 2 row 4 etc etc. If you can't easily recognise the packaging and labelling of a range, the whole point of the pack is lost. A more conventional format could have allowed sufficient space.

Through years of working on Nectar, Sainsbury's, Persil, PG Tips and many other Lever brands I confess to being a coupon junkie. But I thought everyone knew that in retail you stagger coupon validity dates to encourage repetitive behaviour? What Waitrose has done is basically given me £4 off my next shop. That's not quite the behaviour they want to encourage.

They should be offering more than 4 coupons. Better to do 8 x 50p coupons than 4 x £1. It looks a better deal. You should then allocate half those 50p coupons to specific essentials products. That way, Waitrose oven chips (for instance) are no longer £1.25p but a massively compelling 75p! A few 'allocated coupons' will do more to promote the range and the value concept. Net coupon value often makes little difference. Shoppers either use coupons or they don't. Always worth testing though.

Don't give me any guff about Waitrose customers 'being different' and impervious to promotions or 50p offers. These are people shopping in Tesco half the time for their 'basics'. Hence this campaign.They are as incentive-driven as anyone else. They avidly collect points with Nectar, Clubcard, Boots, Air Miles etc.

I hope this campaign works well because I admire both organisations involved. It just could have been a lot smarter. Doubtless it will win an award.

Cannes does not fit this age of austerity

1225254 — Tue, 28 Apr 2009 08:15:00 GMT

Today the London Business School reports marketers 'must focus on consumers looking for bargains in a new era of austerity'. For agencies, austerity is truly biting hard. Waves of redundancies have generated a miserable atmosphere, and inevitably damaged morale. And lots of very good people gone. It's not just been a case of 'dead wood'.

In these straitened times, any overt displays of opulent spending or lavish entertaining are rightly frowned upon as being out of tune with the times. This is Gordon Brown's Britain.

Except for one very visible case. In June, agency heads will be jetting off for a week of thinly disguised hedonism in the Cannes sun. I'm sorry, but it all feels very nineties, if not eighties, to me and entirely inappropriate for 2009.

Forget about the awards themselves, let's assume all the Direct winners will be very worthy and fine examples of creative innovation, even if hardly any (as was the case last year) are from the UK. And I'm sure the presentations will be insightful and well attended.

No, think of the image being projected by all those jolly important people sipping cocktails outside the Carlton and cracking open the Dom Perignon aboard a private yacht, while back home their staff await the dreaded call from HR. Think what hay the Sun or Mail would make of it. Then think of the employees who have lost their jobs to pay for those c.£2,000 tickets (plus flights and accommodation). I can tell you what those employees will be thinking about it.

I wonder how much 'insight into austerity' people will find on the beach at Cannes?