direct views: march 2010

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PRESIDENT’S COLUMN

Directly Speaking

Judy Arnold, SEI

The heart of all direct marketing is data. The list. The marketing history. Response results. Media

preferences. Trend reporting. Online behavior. Accurately gathering data, tracking and analyzing it, helps us refine our targeting, make better decisions, adjust our media buys, stop unsuccessful campaigns, and implement more of the ones that work.

Data is what allows us to produce measurable marketing. Performance marketing. Results.

To effectively manage data, you need a CRM system. According to David Bernard, managing director of DB Marketing Technologies, the typical underlying objective of CRM practices is to improve marketing performance and strengthen customer relationships, making them more profitable. And, he has proven that effectively auditing and managing a firm’s CRM can save millions. (www.dmnews.com, January 20, 2010)

The trick is to select a CRM system suitable for your business and sales methods. If you can sell direct through media, ecommerce functionality is a critical component. And, you have to implement a system that will actually be used by the marketing and sales groups. If you generate business through a direct sales force, having management support from the top down, and buy-in from all of the sales teams, is absolutely necessary for success. The CRM becomes the primary data source to identify suspects, prospects, and valuable clients. That means data integrity — contact updates, corporate financials, marketing results, purchase history, and regular cleansing — is essential.

After all, remember the tried-and-true “40-40-20” rule made popular by direct marketing guru, Ed Mayer, in the 1960s. It still drives most direct marketing campaigns today. Success is based on 40% list, 40% offer and 20% creative. If you don’t target the right audience, even the best copy and design doesn’t have a chance. Again, it comes down to data.

As a direct marketer, I believe that now more than ever, if you can’t track it and prove a return on your investment, then you shouldn’t do it. I recognize the results of some marketing efforts are harder to quantify than others. But,

you can assess the total impact of your integrated efforts of public relations, image advertising, and social media buzz, along with direct response campaigns, to see an overall impact on sales. If the business you generated covers your expense, it’s a win. With the right data, you should also look at the lifetime value of your clients and determine benchmarks of what a new customer is worth. That data can drive the development of your direct marketing budget.

This issue of Direct Views provides commentary to support the importance of data, the value of maintaining clients and increasing business among customers, and refining CRM efforts. I hope these articles, and our ongoing monthly programs, help you stay on top of the many facets of direct marketing. We welcome your perspectives. Send us your thoughts at [email protected]. n

Table of Contents President’s Message ............................................................................3

The Best Source of Business Is Existing Customers .................4

Customers as Confidants: Customer Panel Management Made Easy .......................................................6

January Speaker, Det Ansinn, Brings Mobile Age into View ........................................................ 10

2010: The Year of Purpose, PURLs, Pennies, and Premeditation .......................................................... 11

Famous Last Words: Upset Customers Break Companies ........................................... 12

The Second-Best Direct Marketer Is Going To Win Your Benny! .......................................................... 13

Welcome New Members ................................................................ 13

News & Notes ..................................................................................... 14

Get the Visibility You Need ............................................................ 15

Direct Marketing Experts ............................................................... 15


You and your sales team, like most people reading this, are probably

spending a great deal of your time searching for new customers and new business. What’s different now is how hard you have to work to get these new accounts — the economic climate is making lots of people shy about committing to new spending.

What to do? Take this opportunity to reexamine your current customers. Although it’s important to always pursue new customers and new markets, it’s also crucial to keep focused on the accounts that have given you the success you enjoy today. You may have heard it before, but it bears repeating: in a contest between new accounts and repeat business, repeat business is cheaper (as much as six times) and easier (as high as 75%) every time.

If you’re not there, someone else is.Now that we’re on the subject: when

was the last time you worked on selling to your existing customers? Regardless of what your answer is, here’s something you can bet on: your competition was there not long ago. Even the most loyal customer can only be pitched by your rivals so many times before some of it starts to sink in...unless, of course, you’re there to set the record straight and keep them educated about your latest and greatest offerings.

By now if you’re feeling panicked, don’t take it too hard: this is a common problem. But why? Why treat prospects better and give them more time than the people who are paying the bills right now? When you think about it, it doesn’t really add up — especially since in many cases, selling to current customers can actually increase your business between 50 and 100 percent.

The point is simple: show us a business that relies solely on the success of their last prospecting project, event, program, trade show or campaign, and we’ll show you a company that’s in danger of losing clients. Keeping this in mind, the following two statements should make perfect sense:• You can’t afford to market less to your

existing customers than your competitors who are trying to win the business.

• You can’t afford to put all your efforts into gaining new business and assume your current clients will speak up when they need something.

Are your clients 100 percent sold?That’s really the heart of the matter, isn’t

it? Are you getting 100% of the available business that you are capable and qualified to provide? Having a customer who needs something that you’re not providing them is a lot like winning a poker hand and leaving half your chips on the table.

If you aren’t sure, consider these follow-up questions:• Do you know whether or not your

existing customers go elsewhere for products or services that you provide? If so, how often does this happen?

• Of all the products or services you offer, how much does a typical customer buy? Do they need more/could they buy more? (Hint: they probably could.)

Remember: your competitors (or at least the smart ones) are constantly marketing to your customers. They are contacting every possible decision-maker — not just your contact. Most importantly, they’re not only selling against what you currently offer, but selling things your client doesn’t know you provide.

Three Ways to Close the Gap to 100%Cross sellInG: “Do you want fries with that?”Cross selling promotes an accessory or series of accessories that, when combined with the primary product, makes a better or more complete solution. One of the easiest ways to cross-sell is to have customers customize a base product with a variety of clearly-defined, easy-to-understand options.

Don’t buy it? Big mistake: never underestimate the power of cross-selling! While numbers vary by industry, a successful cross-sell, on average, is about 25 percent of the value of the original sale —not bad, eh? It’s easy to see how quickly a few good cross-sells can add up.

UpsellInG: “You can supersize that for just 42 cents more!”

Upselling offers a more powerful or higher level offer than the one the customer is considering. Often, a customer’s needs will actually align better with the upgraded option, even if it is a little more expensive. The salesperson has to make

sure the customer is aware of all possible options, educating them and encouraging them to think carefully before making a final decision.

resellInG: “Here’s a coupon for $1 off your next visit!”

One of the biggest revelations marketers ever had was realizing that many customers are actually an ongoing stream of revenue, not a one-shot sale. You can maximize the number of people who come back for more simply by focusing more on them. Become attuned to their needs as they grow and change, provide incentives to return, and repeat sales will follow.

start today: treat existing customers differently (i.e., better).

Here are a few easy techniques for marketing to existing clients versus new ones:

1. reward and encourage Customer loyalty

Psychology 101 here: when you reward people for doing what you want them to do, they’ll be more likely to do it — and continue doing it. Don’t be afraid to be creative instead of making a traditional “loyalty program” — giving something away for free after the 10th purchase

The Best Source of Business Is Existing Customers

Eric Keiles

Eric Keiles ([email protected]) is the chief marketing officer at Square 2 Marketing and the co-author of the book Reality Marketing Revolution. Square 2 Marketing Practices Reality Marketing™, a realistic way small and medium-sized businesses can generate more revenue without the“fluff.” More information and free resources to help your business can be found at www. square2marketing.com. Article edited by Josh Righter.

continued on next page


won’t necessarily build customer loyalty or increase the profitability of your business. In fact, it could even do the opposite by devaluing your product and decreasing revenue. The key is to offer rewards that make the most sense for you, and more importantly, your customers.

How? Try to understand both what your customers want and what a profitable sale and valuable long-term customer relationship actually looks like to your business. Spend the time to ask customers what you are doing right, and what you could do better. Why do they shop with you? More importantly, what can you do to make sure they don’t shop with your competitors? Consumers will often switch vendors for reasons that might surprise you.

2. Focus! spend More of Your Marketing Budget on existing Customers

Shiny new prospects might seem more attractive than your familiar old clientele, but those reliable customers have already purchased from you and formed a foundation of trust and permission — you don’t have to wine and dine them like a prospect. Use this platform to build upon the relationship and introduce other products and services.

Keep the old 80/20 rule in mind: the top 20 percent of your customers account for 80 percent of your revenues. Spend some time today going through that top 20 percent. Then, send them each a personalized card thanking them for their business. It may seem simple, but even this one act can increase your sales dramatically.

Next, compile a list of everything these customers have purchased in the past, and identify complementary products and services that they could use now. Dedicate a portion of your budget to marketing these products and services directly to the appropriate customers.

Finally, identify other customers who are right on the bubble of the elite 20%. Dedicate some time and resources to massage this important segment with a little smart messaging — it could make the difference between someone who wanders away from your business and someone who comes back for more.

3. Create a CommunityIn his book Tribes, marketing guru Seth

Godin talks about the need for businesses to step forward and lead “tribes” — groups of people that are passionate about something related to that business, like a common mission, product, service,

philosophy, etc. Using your existing customer base to create your own tribe can not only increase the purchases that those customers make, but attract new customers into the tribe as well.

People in a tribe don’t just trust a company — they believe in the experience, value, or community that they perceive that company is offering. Your customers are more apt to spend money when they feel they’re getting more than just a thing. Simply put, they are seeking connections in their purchases. This isn’t an easy thing to create, but constantly thinking about the brand and identity that your business conveys will go a long way towards your goal. And while you can’t show up at your customer’s doorstep every day and say hello, you can use strategic marketing to keep your messaging constant and consistent. If your tribe is strong enough, it will be “sticky” — hard to switch from.

Face the facts.Many of your would-be prospects just

aren’t buying right now, so why force the issue? Save yourself valuable time, resources and money by redirecting the bulk of your budget to communications with existing customers. You’ll find a group willing to listen, and even willing to buy. n

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no magic pixie dust exists to turn customers into confidants. Instead,

companies must do the hard work of continuous learning, over and over and over again. To build outstanding customer experiences, Forrester’s Bruce Temkin advocates organizations adopt a process that Forrester calls “LIRM”:

lIsTen broadly for the Voice of the Customer, as customers express their needs, wants, and frustrations in their own words.

InTerpreT what this really means for your business. Is an attitude widespread or representative of a small group of customers? If the customer tells you that they want “a faster horse” (a la Henry Ford), how do you translate that into new product specifications?

reACT to these needs and change your business accordingly. Most organizations fail to take action on the feedback they gather; put a process in place where customer feedback is used to drive ongoing process improvements.

MonITor the results of the changes on an ongoing basis, through formal and automated processes.Then start the process all over again! Feedback is the axis by which your organization can spin up continuous learning. Ask customers questions systematically after each interaction. Turn to customers for discussion of new initiatives, big and small. Acting on what you learn encourages even more feedback.

Disconnected listening: An eFM Case studyIn a story that would prove to become typical of many organizations, in 2003, a customer came to us reporting that web surveys had become so successful that they were now a problem! The customer was an automotive manufacturer that had originally used Perseus SurveySolutions for conducting course-evaluation surveys. One enterprising department then realized that they could use the software to conduct a survey of all their dealers. This was the first e-mailed survey invitation sent to their dealers, and most of the dealers eagerly

answered the questionnaire. With the huge response rate, the customer was thrilled at the depth and quality of the data they gathered.

The success of that survey quickly became well known within the organization. Many departments had needs for insights from the dealers, and web surveys became commonplace. Some departments used Raosoft EZSurvey, some used WebSurveyor or other online tools.

Sadly, but not surprisingly, eventually the response rates to web surveys declined, the enthusiasm of the dealers waned, and dealers complained about receiving too many surveys. Web surveys had become a victim of their own success.

Here were the problems our customer reported:“We’re asking more and getting less”Response rates to surveys are decliningThe same questions are being posed by

different groupsThe results from the surveys are not

being shared“We’ve lost control over timing,

frequency and branding”No integration with the dealer

information system“We’re concerned that employees are

running consumer surveys that gather data that violates our privacy policy”

Concern about data security on low-end hosted survey systems

Like many other organizations, this customer turned to panel management to solve many of these issues:• Centralized touch management of all

dealers enabled them to start surveying

random samples rather than inviting every dealer to take every survey, resulting in fewer surveys per dealer.

• Dealer profiles were synchronized with the dealer information system, enabling dealers to be segmented on demand, so that surveys could be sent just to subsets of dealers.

• Commonly asked questions were built into dealer profiles in the panel database so that they did not have to be re-asked but could be hidden within the survey, thereby shortening questionnaires.

• A common workgroup provided a central virtual location for all dealer surveys, so that internal users could see and share other survey results before starting a new survey.

• By standardizing on one system and blocking the IP addresses of low-end survey systems, the IT department eliminated its data security concerns and its concerns about privacy-policy compliance.

Customers as Confidants: Customer Panel Management Made Easy

Jeffrey Henning

Jeffrey Henning, vice president of strategy at Vovici and a co-founder of Perseus Development Corp, is a pioneer in the feedback industry. Mr. Henning has 21 years of experience in the market research industry with roles including market research consultant, analyst and writer to complement his time as a software developer for in-house projects and commercial software. Vovici helps companies engage their customers and increase customer loyalty through innovative Voice of the Customer technology solutions. Their survey, panel management, and community tools help organizations turn feedback into action. Visit www.vovici.com for more information.



As a result of resolving these issues successfully, and preventing web surveys from being a victim of their own success, the auto manufacturer enjoyed a resurgence in dealer participation in surveys. Panel management systems transformed “disconnected listening” into “connected listening”.

panel Management explainedA panel is a group of people with

relevant backgrounds who agree to participate in surveys. Businesses can organize a panel for each group of key stakeholders: customers, employees, resellers, partners, prospects, etc. For general market research, businesses can create panels of people with common interests related to the organizations’ products (e.g., auto accessorizers for a car manufacturer; scrapbookers for a scissors manufacturer; news junkies for a chain of radio stations).

Because panelists agree in advance to participate in surveys and feedback efforts, they become almost a guaranteed source of information for the sponsoring organization. Customers typically participate in the panel because they value their relationship with the sponsor and they appreciate the additional information,

influence and early access that comes from participating in the panel.

For general market panels, panelists instead often look to merchandise and cash rewards, though even for many general panels people participate because they want to make their views heard.

How does a panel work? You invite an individual to participate in a panel and communicate the ground rules:• What they will be surveyed about• How you’ll use the information• How frequently they’ll be asked to

participate in surveys• Why it’s important that they participate• How they can opt-out if they change

their mind• What’s in it for them

Once you gain their permission, you invite the panelist to complete a registration survey, which will gather detailed demographic or firmographic information. This information can be used to target individual surveys to panel subsegments and also provides for rich opportunities in cross-tabulating survey results.

In contrast to online communities, in a panel, members communicate only with the sponsoring researcher; through the

medium of the surveys they are sent. In online communities, members can engage in discussions with one another as well as through an online portal.

panel BasicsPanels can be as easy as 1, 2, 3. The three

essential components of a panel are: 1. Central e-mail list for surveys 2. Ability to unsubscribe from the panel 3. Record of panelists’ survey activity

Central e-mail list for surveysMany organizations start with manual panel management for their customer research. They build their panel manually by importing files with customer data. On the plus side, this is quick to set up; on the negative side, this is time-consuming as they try to keep the list in sync with the list of customers as it changes.

Automatic panel management typically involves using a file synchronization utility that periodically exports files from a CRM system and then imports new and updated records into the panel. This can be done using FTP transfer of files or by using a SOAP API (web integration call). Once this is done, the panel is always in sync with the customer data; in fact,



many of these processes run as is for years with no intervention or update needed. The only negative is that automatic panel management does require an upfront investment in configuration and custom programming and then irregular reconfiguration when the CRM file layout changes or new fields are added.

Ability to Unsubscribe from the panelThe second key requirement of a panel is to maintain a list of people who don’t want to be on the list. For U.S. organizations, this suppression list is not just a courtesy but is required by the CAN-SPAM Act for many types of e-mail. Dedicated panel management systems all have unsubscribe processes and suppression lists as a standard feature. The unsubscribe process becomes more complicated, however, when integrated with marketing systems.

Many organizations have EMM (Enterprise Marketing Management) platforms that maintain a global suppression list, where individuals can opt out of all bulk e-mail communication with the organization. Too often, this unsubscribe process is an all-or-nothing approach. If your panel needs to integrate with Marketing’s unsubscribe systems, make sure to treat “Surveys” as a discrete channel. Let the reader opt out of some but not all channels of communication: list the available types of mailings and the current e-mail settings and offer a separate channel for “Feedback Surveys.” Most individuals are willing to provide feedback, and may unsubscribe from every channel except this one. It’s worth asking them.

record of panelists’ survey ActivityA panel management platform will track the frequency with which individual panelists have been invited to take surveys and how often each individual has completed surveys. This information can then be used to enforce “cool down” rules or guidelines, to prevent panelists from being invited more than once a month or every 60 days (for instance) to take a survey.

More sophisticated panel management platforms will also include panel health scores to look at the participation rates of panelists individually and in aggregate.

random samples reduce survey InvitationsMost organizations without centralized panel management survey the entire list of customers because they can, not because they need to. How can an organization conduct more surveys while surveying

individual customers less often? The magic that enables this is the laws of random sampling.

The two key measures of the accuracy of a random sample are confidence level and margin of error, and they work together. If you have a 95 percent confidence level and a 5 percent margin of error and a question choice selected by 50 percent of the sample, then 19 out of 20 times the true answer—the answer you would find if every single person in the target population answered this question—can be assumed to be in the range of 45 percent to 55 percent.

Just 400 results will achieve at least a 95 percent confidence and 5 percent margin of error no matter whether you have millions or thousands of customers. As a result, you can attain highly accurate results without inviting everyone on your panel to participate. Instead, randomly select participants for each survey. This leaves plenty of unsurveyed panelists available for other researchers in your organization.

panels require representative e-mail lists of Customers

For random samples to be effective, the panel must be representative of customers. Some organizations, such as ecommerce sites like Amazon and eBay, are fortunate in that they have the e-mail addresses of every single one of their customers. When they invite a random selection of customers to participate in a survey, they can be assured that the results are truly representative of their customer base.

Most organizations are not so fortunate. A traditional B2B vendor might have the e-mail addresses for perhaps half of its customers. A consumer brand might have e-mail addresses for fewer than 10 percent of its customers. For these organizations, panel surveys with random samples are only representative of the customers for whom they have e-mail addresses. Such organizations must be very careful when presenting their results to not generalize them to all customers; significant differences probably exist between the groups of customers for which they have e-mail addresses and the group for which they don’t. If the panel is not representative, always describe the survey as representative of the target population for which the organization has e-mail addresses, not the wider target population.

Conduct a telephone study or paper survey of customers for which your organization doesn’t have e-mail addresses to determine their demographics, firmographics and attitudes. This can be used to contrast this group with the group accessible by e-mail.

Developing and maintaining representative panels is a serious ongoing responsibility. The surest way to build a representative panel is to have as many customers as possible participate. Work with the marketing department to increase the percent of the audience who have provided e-mail addresses; for offline businesses, offer incentives for customers to share their e-mail address with your organization. Make aggressive use of your organization’s Web site to encourage customers to sign up, offering a subscription text box on every page of the Web site.

panel Management Best practicesOnce a basic panel is in place, your

organization can begin gathering research more systematically and more regularly. You will see greater participation rates as panelists are randomly selected to occasional surveys rather than being invited to every survey.

Vovici and CGA, a customer-experience

continued from page 7



consultancy in the United Kingdom, surveyed more than 200 organizations between May 20 and June 2, 2009, to determine what the most successful organizations are doing to achieve measurable improvements in customer loyalty. The results of the Vovici/CGA Customer Experience IQ study strongly show which panel management practices are the most important to focus on. Each best practice was correlated to a customer loyalty index, in order to determine which practices had the highest positive correlation to loyalty.

For panel management, integrating data from the Customer Relationship Management system into the panel had the highest correlation (0.57), though it was practiced by comparatively few organizations. By integrating data, surveys appear smarter and more engaging to respondents, who are not asked to provide information that they have provided in the past; surveys with integrated CRM data can branch to relevant sections of the questionnaire based on that hidden data, making the survey more targeted.

Panel management enables organizations to coordinate feedback projects across the entire organization (0.47 correlation to loyalty), reducing survey fatigue by minimizing surveying of the panel. Using the panel to develop a 360 degree view of customer experience is also a key best practice (0.41 correlation), as is using the panel to conduct trend analyses, tracking customer attitudes over time (0.40 correlation).

The results of the CE IQ study will help you prioritize which best practices you should put into place first.

panel Management & online Communities

For many organizations, panel management is the first step on a path

to building online research communities. Once panelists are used to being turned to for research, logging into an online portal where they can interact with one another is a natural next step. While not every panelist wants to take the time to participate in an online community, a vocal minority does. Their participation will give your organization a rich source of qualitative information.

The great advantage of an online community over a panel is that community members will raise and discuss issues

that your organization would have never thought to have researched. This is a great way to develop a broader understanding of your customers. That said, just because an issue becomes a popular topic in your new online community does not mean that it is an issue across your customer base.

The word quantitative in quantitative research means that you can quantify the wider population based on the research results. The reasons most communities are not representative is because of the self-selection bias for joining the community (similar to the self-selection bias that makes online polls unrepresentative). Even in closed communities, those who agree to participate in communities may represent positive or negative extremes, since agreeing to participate in a community is even more time consuming than agreeing to take a survey. Further, most community managers do not ensure that the community demographics match the overall audience demographics.

For all these reasons, to achieve representativeness, and determine how widespread views of the community are in your wider customer base, you must reach beyond the active community members. Properly performed panel management

continued on page 12


“our digital lives are mobile and mobile is driving social media

forward,” explained Det Ansinn, vice president of Mobile Technology for Mobile Tag Company and president of BrickSimple LLC, the software development arm of Mobile Tag, at the January 20, 2010 networking & lunch meeting.

During his presentation, “How to Hit a Moving Target: Secrets of Marketing in the Mobile Age,” Ansinn established the case for integrating mobile into a multi-channel marketing strategy. “Our digital lives are mobile – 56 percent of adult Americans accessed the Internet via wireless in 2009. More than 150 million adults use social media on their phones. People carry the Internet with them and use social media in ways that are immediate and accessible. Marketers need to know how to hit the moving target so as not to miss out on a tremendous opportunity.”

Ansinn offered that successful mobile efforts:

January Speaker, Det Ansinn, Brings Mobile Age into View

• engage the user wherever they are;• extend the brand into the everyday,

everywhere experience of the consumer;• provide a timely level of engagement;

and• can be applications or Web sites.

“People share information in a more public and transparent way now. People crave a deeper level of connectivity and it is the marketer’s job to provide content that is both timely and relevant.”

Ansinn also explained the importance of maintaining a Web site that mobile visitors can access. “There are so many platforms and competing technologies and marketers must be careful to know and design to various specifications. The worst thing is to have an effective Web site that mobile users can’t see.”

Ansinn shared these useful principles for engaging in mobile marketing:• Accept that mobile is not appropriate for

everything.• Understand your target community.• Know the devices (strengths and

limitations) that are being deployed within your community.

• Determine goals for type and level of engagement up front. “Mobile marketing is here to stay.

Successful apps require successful marketing strategies. Use and understand mobile devices. Don’t reinvent the wheel — integrate other social media experiences into your engagement with consumers. Learn as much as you can about this exploding new channel to benefit from it.”

Thank you to the January Meeting Sponsor: Think InkFor more information please contact David Loos, 8101 Cessna Ave. Gaithersburg, MD 20882(301) [email protected].

Det Ansinn, President of BrickSimple LLC, shares his insights on mobile marketing.

Dehlia Towler, Birgitta Sama and Marie Caldwell get together at the January meeting.

Geff Rapp, Amy Hoffman and Julian Barkat find time to connect during the luncheon following the January program.


2010: The Year of Purpose, PURLs, Pennies, and Premeditation

Crystal Uppercue

Has there been a slowdown in advertising spending? Reports are

mixed. Nielsen says some of the biggest brands actually spent 27 percent more on display ads in the first quarter of the year. Forrester forecasts that online advertising will shift from 12 percent to 21 percent by 2014, along with social media spending, which is projected to jump 34 percent. Ditto mobile ad spending (up 27 percent).

On the direct mail front, May Borrell predicted a 39 percent drop in direct mail spend by 2013. Analysts think much of any falloff will come from less spending by the catalog, coupon, and troubled financial services sectors. But consider the countervailing forces:

1. Even if Borrell is right about the 40 percent falloff forecast, five years from now the projected spend will remain at a very healthy $30 billion annually.

2. As recently as September 2009, American Banker reported a surge in mail offers for premium cards to wealthy customers.

3. While the financial services sector may have backed off, other sectors like homeowner and health care insurers and health care providers actually increased direct mail spending this year.

4. Some subsets of direct mail (for example, postcard sends) actually enjoyed a resurgence and produced some terrific results.

5. Cross media marketing, which has evolved to employ an effective mix of direct mail, e-mail, and PURLs (PURLs are personalized url’s that direct the reader to a personalized site), gets more appealing every day.

The point is that more than ever, direct marketers need to embrace the four Ps:

1. purpose — don’t leave the post office without it.

DM expert, Keary Kinch, wrote a compelling article titled, “Membership Math for Dummies.” Kinch said, “I do a lot of public speaking and I am shocked at how many times I have been asked, ‘How can I move away from this expensive acquisition program that my board hates?’ The math is easy — you simply can’t do it. Unless your members renew at 100 percent, your membership base will decline if you do not acquire new members. This is always true, it’s basic arithmetic.” Keary is right. In short, if you have a purpose, keep on mailing; test, yes, but keep on mailing.

2. pUrls are a tremendous tool in the direct marketing arsenal.

While direct mail packages typically generate response rates of less than 1 percent (with rates of 2 to 3 percent considered stellar), PURL-based campaigns can hit returns of 20 to 30 percent. Also, since PURLs collect data in real time, you’ll know immediately who is visiting your Web site and where their interests lie — crucial feedback that helps you nurture new leads efficiently.

3. pennies (save them). Know postal regulations and follow them.

Mail lighter and smaller. Clean, clean, clean your lists; then work your lists.

When your list is in order, consider variable data printed, highly targeted appeals.

4. premeditation (or how not to be found guilty of flying by the seat of your pantaloons)… and, yes, that means plan.

Not only will your results be better, you’ll build credibility. My article, titled “Seven Magic Numbers and Four Ways to Impress the CFO,” demonstrates how “numbers knowledge” not only exemplifies your direct marketing savvy, but demonstrates your bottom-line value to the organization.

5. prediction (definitely not one of the four ps, but useful in this space).

Things will ease for all of us by mid-year 2010. In the meantime, we watch the other four Ps and win.

Crystal Uppercue is marketing director of EU Services, a mid-Atlantic based direct marketing production firm. Contact [email protected] for a copy of “Seven Magic Numbers and Four Ways to Impress the CFO,” or for more information, contact Crystal at (301) 230-3362.


A pre-Internet marketing rule stated that a happy customer would tell an

average of three people while someone who was disgruntled with a product or service would tell 11 people.

The advent of the Internet has upped the ante exponentially. Wrong a customer and you will be punished. For example, if you haven’t heard the 2006 customer service call that went all over the Internet and effectively wrecked AOL, give a listen: http://url2it.com/bhoc.

Dave Carroll, a guitar player with Sons of Maxwell, was flying United Airlines to a gig in Nebraska with his $3,500 Taylor instrument. Witnesses said they saw baggage handlers in Chicago throwing luggage around including his guitar, which he claims, they broke, and he was stuck with a $1,200 repair bill. (It should be mentioned here that top musicians buy seats for their instruments, e.g., Yo-Yo Ma’s cello.) You’ll find Carroll’s harrowing account of the incident at http://url2it.com/bhmr.

It’s a story that starts ugly and gets uglier as the United bureaucracy gave him the runaround for six months. Carroll blogged about it and then wrote an endearing song titled “United Breaks Guitars” and produced it as a very amusing video on YouTube, which you can see at: http://url2it.com/bhmq.

As of press time, Carroll’s YouTube production has generated more than 6 million views.

United’s third-quarter loss was $57 million, and chances are very good that some of the red ink could be attributed to Carroll giving its customer service a spike in the eye with his blog, his song, the attendant press coverage and the ghastly PR.

Famous Last Words: Upset Customers Break Companies

Denny Hatch

The takeaways from this story are many and worth committing to both memory and to a corporate operations manual:

• With the Internet, an unhappy customer can reach millions to billions of people worldwide.

• The term CRM, customer retention (or relationship) management, was dreamed up by MBAs or bean counters with antifreeze running in their veins. Your job is to create customer relationship magic!

• “Times of adversity and customer screw-up’s may be the only times when you can really show your customers how much you love them.” — Malcolm Decker

• “Properly handled, disgruntled customers can become your best customers.” — Judith Schalit

• Do you have secret shoppers constantly ordering and returning merchandise and then reporting back to you on your fulfillment operations? If not, why not?

• “Consumers are neither sheep nor fools. They can sense when companies are consistently more loyal to investors, employees, and regulators than to the people who buy their products and services. They behave accordingly. Customers are not being disloyal; they are being discriminating. The central marketing question confronting brand leaders therefore is not, ‘how can we radically increase customer loyalty?’ but, ‘how can we radically increase our own loyalty to customers?’” — Michael Schrage, FinancialTimes.com, “Customers want loyalty, not perfection,” May 1, 2007. n

From Target Marketing magazine, January 2010 issue. Copyright © 2010. All rights reserved. Reprinted with permission.

Denny Hatch is a freelance direct marketing consultant and copywriter, and author of the e-mail newsletter, Denny Hatch’s Business Common Sense. Visit him at www.businesscommonsense.com or www.dennyhatch.com, or contact him via e-mail at [email protected].

provides a critical source of quantitative research. In fact, panel management remains of critical importance even after—especially after—an organization has formed online communities.

The best mix of qualitative and quantitative research is to use the online community for qualitative research and to then use the panel for quantitative research.

Combined Approach Creates Customer Confidants

In traditional market research, respondents are considered disposable: just another domino to be knocked down to complete a survey. The researcher’s organization doesn’t have any relationship with the respondents. They are invited to the survey by a third party, who has typically built a panel for just such use. The researcher doesn’t care if the respondent finds the survey to be long, tedious and frustrating, so long as a sufficient number of respondents answer the questions.

In proprietary panels and online communities, on the other hand, members are valued partners. They are customers, prospects, employees, students and investors. The researcher’s organization has a direct relationship with these respondents, and the researcher needs to treat them with respect. The worst survey is one that so antagonizes a customer that they wish to take their business elsewhere. While rare, surveys designed for respondents rather than partners can definitely lead to customer dissatisfaction.

Researchers can’t treat their panel and community members the way they would treat third-party panelists:

• Don’t survey members too often• Don’t subject members to long or

tedious questionnaires • Don’t ask members questions your

organization knows the answer to

With a well-designed panel and online community, an organization can turn to customers (as a group) frequently to gather important feedback. Ultimately, this is how customers are turned into confidants. n

Customers as Confidants:continued from page 9


The Second-Best Direct Marketer Is Going To Win Your Benny!

Woulda, Shoulda, Coulda

You Are InvitedVisit the PDMA Web site and

• Check out the NEW Career Center (jobs posted locally and nationally).

• Register for an event or meeting.• Download valuable case studies or white

papers … and more!

Welcome New PDMA MembersChris BuoniPerfect Printing1533 Glen Ave Moorestown, NJ 08057(609) [email protected]

rich FarrowACE-INA436 Walnut St WA90DPhiladelphia, PA [email protected]

David GatesAccount ExecutiveJaps-Olson Company146 Bear Swamp Rd East Hampton, CT 06424(860) [email protected]

regret only fades away, it never vanishes. So this summer when

warm breezes fill the air and once again the Benny Awards event rolls around, be sure, be very sure that the very best creative wins, not the second best wins by default because YOU (maybe truly the best after all ) did not enter.

Yes it is that time again! Benny Time!From the PDMA, we have some good

news. Entering is still easy. Just go to our Web site at www.the-pdma.org and click on BENNY for all the forms,

information and details you will need. Still have questions? Then just give us a call at 215-473-1668 and we can walk you through the entry form.

We have some even better news. The Benny Awards are at the same great place everyone loved last year (see, we do read those survey results). Yes, the event will be at the same price, same free parking, and same two free drink tickets included with each ticket.

We also have some GREAT news. This year, members from the Direct Marketing

Club of New York have graciously agreed to judge the entries! It’s the City of Brotherly Love’s chance to show the Big Apple that while they may have been lucky in baseball, they are going to see some real competition for the National Echo’s this year!

So enter now before the deadline of April 6 and mark your calendars for June 3, 2010 at The Farmhouse at People’s Light & Theatre. See you there! n

David KalePresidentKale Design, Inc.883 Hoover Rd Blue Bell, PA 19422(215) [email protected]

rob laileCorptv687 West Lancaster AveWayne, PA 19087(610) [email protected]

Carol papazianSales RepresentativeRite Envelope & Graphic, Inc.250 Boot Rd Downingtown, PA 19335(610) [email protected]

John rosenthalPresidentDigital Color Graphics105 James Way Rear BldgSouthampton, PA 18966(215) [email protected]

Birgitta samastudio b136 Runnymede Ave Wayne, PA 19087(215) [email protected]


E-mail your news to The PDMA today at [email protected]. All submissions must be e-mailed and received by the 20th of the month prior to the publication month (e.g., April 20 for the May issue).

Annodyne, Inc., a digital consultancy based in Blue Bell, PA, is pleased to announce that it has been chosen to create an online marketing campaign for The Philadelphia Orchestra with the goal of boosting single ticket sales. Learn more about Annodyne at www.annodyne.com.

DMW Worldwide llC, a full-service direct response marketing agency with offices in Wayne, PA, and Plymouth, MA, announced that the agency and two health insurance clients were recently honored with 2009 Marketing Methods Awards. The Marketing Methods Awards competition is held annually by the Professional Insurance Marketing Association (PIMA). A Bronze award was received for the DMW-developed “Shopping Pass,” entered into the “Lead Generation” category. DMW also was given Honorable Mention recognition for its “Call, Call, Call” direct response television commercial, entered into the “Other Media” category. DMW also announced that the agency has hired Daniela Ciocca Gelety as Senior Account Executive. In her role as Senior Account Executive, Gelety will work closely with DMW’s expanding client roster, specifically those in health care. For more information, visit www.dmwdirect.com.

ICT GroUp, InC., a leading global provider of customer management and business process outsourcing (BPO) solutions, announced that it has donated over $70,000 to Habitat for Humanity Philippines, an international non-profit organization that builds responsible and self-reliant communities by enabling families in need to acquire affordable, decent and durable homes. “We are extremely pleased to be supporting the rebuilding efforts of the people of the Philippines, through our charitable contribution to the Habitat for Humanity,” stated John J. Brennan, chairman and chief executive officer of ICT GROUP. To learn more about ICT GROUP, visit the company’s Web site at www.ictgroup.com. n

News & Notes

From John Dubeck to Jon Roska, and Warren Hunter to

L. Scott Schultz, the PDMA has honored 38 outstanding Direct Marketers for their contributions since 1974. Now we are asking for your help in selecting the 39th Direct Marketer of the Year!

Who do you believe has earned this year’s Direct Marketer of the Year honor? Could it be a colleague? Yourself?

2010 Direct Marketer of the YearDeadline for nomination is March 22, 2010

Submit a Colleague or Nominate Yourself! In order to be considered, please be sure you address the following

in your nominee’s biography:• Made a significant contribution to direct marketing in the last year.• Developed a reputation for integrity and leadership.• Made an invaluable contribution to PDMA and to the local direct response industry.• Been recognized as an industry leader either regionally or nationally.• Made a big difference in area direct marketing in a demonstrable way.

The PDMA Board of Directors will determine the winner. The recipient will be announced in May and honored at the June 3 Bennys Awards event.

Please address the above selection guidelines in the nominee’s biography — along with their contact information — and also include your contact information as the nominator.

To submit a nomination for this distinguished award, please e-mail PDMA ([email protected]) by March 22, 2010. n

Did You Know?There are many PDMA membership benefits and services that you might want to take advantage of and so receive full value for your dues! Here are just a few:

printed & online Membership DirectoryReceive our wired-bound membership directory with members listed alphabetically and by company. Each company is also encouraged to provide a company description. This year’s directory will soon go to print, so don’t delay.

PLUS — Access the online web directory, in the members-only area, you may search for members by last name or company. This is a member’s only resource to get new business and make new contacts.

Career Center online — www.the-pdma.orgYou can find employees in our PDMA Career Center … or a new position for yourself. As a PDMA member, you may post your resume or job listing locally for free.

Non-members pay a fee for this service – your PDMA membership is covered with just one posting! PDMA members can also post jobs nationally for a reduced fee.

PDMA members may also post their resumes locally for free and then discounted, nationally.

Benny DiscountsYour membership also earns you a discount on every Benny entry you enter in this prestigious industry award competition. If you submit just four entries, you cover your annual dues!

Member Meeting Discounts & special servicesPDMA meetings address real business issues affecting the direct marketing industry as well as providing great networking opportunities. Members can attend these business building meetings at a discounted rate. That’s a savings of $15 off the non-member rate. Attend just 10 meetings and you have more than covered your annual dues. PLUS — as an attendee at any of our monthly meetings, only members receive the meeting attendance list with contact information. n

Honoree Scott Schultz with PDMA President Judy Arnold


ABC Mailers page 9Anthony Bucolo at (856) 241-2100

Frontline performance Group page 5 Chris Brown at 1-800-930-1214

Japs-olson Company page 2Debbie Roth at (952) 912-1440

nova label page 11Randy Fine at (800) 246-0506

THANK YOU TO THE ADVERTISERSin this issue of DirectViews.

Please utilize these Direct Response Experts when you can:

To join this impressive list of direct marketing experts, place your ad today with lou Yager at (610) 664-7374.

pDMA 2009-2010 Board of Directorspresident Judy Arnold SEIsecretary Jim Murphy Jim Murphy CommunicationsTreasurer Jim Toohey Direct GroupChairperson Lisa Formica fmi direct mail, inc.Board Members Phillip Barnes Wedgewood Pharmacy

Marie Caldwell GMR Group James Covelens United Health Group

Karen Keenan Associates Graphic Services

Charlie Ohanesian The WordTech Group

Geff Rapp Group G Direct

Birgitta A. Sama studio b

Valerie Schlitt VSA, Inc.

Ken Shirey Direct Group

Joanna Smith Philadelphia Protestant Home

Richard Travaglini RGT Direct

Joyce VanRavenswaay ACE-INA

Denise Williams Goodman Marketing Partners

MArCH 2010PDMA DirectViews is published bimonthly by and for members of the Philadelphia Direct Marketing Association and other interested direct marketers. For more information, visit www.the-pdma.org.

editors Marie Caldwell Joanna SmithDesign/layout Gotwald Creation, inc.printing Global Direct Colorlettershop fmi direct, inc.

pDMA office4520 City Line Avenue, Suite 301Philadelphia, PA 19131

Voice (215) 473-1668FAX (215) 477-1109e-Mail [email protected] site www.the-pdma.org

AdvertisingFor advertising rates and schedules for all PDMA publications and sponsorships, contact Lou Yager at 610.664.7374. All ads must be submitted by the 15th of the month prior to the publication month.

Global Direct Color page 7Mike Dubowitch at (215) 671-1305

print Art Inc Back Cover Frank Nardi at (609) 645-1940

signed, sealed, Delivered, Inc. page 13 John Caruso (610) 539-5100

Valley Forge Tape & label Co page 10Paul Myers at (610) 524-8900

Get the Visibility You Need!

Last ChanceAdvertise in the 2010 PDMA Membership Directory

The PDMA 2010 Membership Directory will be published in May 2010 and mailed to all PDMA members and advertisers. More than 1,000 select influential direct

marketing professionals will receive this book throughout the year. Plus, select ads will also be eligible for free Web ads!

The PDMA Membership Directory will list the member’s name and business name, address, telephone, fax, e-mail, Web site and company description of all renewed and current members. There will be two member listings — one by last name alphabetical and one alphabetical by company name.

Ads will be placed between these two listings and will be printed in COLOR! To place your ad, download the Directory Ad Placement form from the PDMA Web site or contact PDMA Ad Representative Lou Yager at (610) 664-7374.

Ad rates for the 2010 Directory – Deadline February 15, 2010

Ad size Width/Height Guide rate

Back Cover 7 ¼ x 10 $1,450 plus a 12-month Web ad

Inside Front & Back Covers 7 ¼ x 10 $1,150 plus a 6-month Web ad

Full page 7 ¼ x 10 $800* plus a 3-month Web ad

½ page Horizontal 7 ¼ x 4 ¾ $475

½ page Vertical 3 ½ x 10 $475

¼ page Horizontal 7 ¼ x 2 ½ $300

¼ page Vertical 3 ½ x 4 ¾ $300

Business Card (Horizontal) 3 ½ x 2 ¼ $125

*Platinum member companies receive $100 off a full-page ad.

direct views: march 2010

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