Ringing Telesales Bells
Although many UK industries have long used in-house telephone marketing departments, telephone selling as an industry itself is relatively recent. Of the 6 leading telephone marketing firms in the UK, most have been in business only 2 or 3 years. The telephone offers such advantages as: 1. being an immediate advertising form, often with immediate results, 2. allowing campaigns to be executed rapidly, and 3. being cost-effective, compared to the traditional salesperson’s visit. One area where telemarketing has grown rapidly is in dealing with low-unit-value products with a large, highly fragmented, and geographically dispersed potential market. Another extremely profitable line of business for telesales is seeking qualified leads for companies. Telesales have also been used successfully with direct mail campaigns. Despite the growth of the UK telesales industry, it is not expected to reach the multimillion dollar proportions as in the US.
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Brown, Malcolm
Full text: [Marketing] Oct 7, 1982
Viewpoint: Getting Personal in Direct Mail
What makes direct marketing different from other forms of marketing and advertising is that it is: 1. a highly targeted form of marketing, 2. inherently action-oriented, and 3. highly personal. When starting a direct mail campaign, clarify your objectives. Specify your product and where it fits in the marketplace. Beware of incomplete or confused options. Choosing the right audience is the key to getting personal in direct mail – it is also the hard part. To choose among lists, pick quality over quantity every time. The best mailing list is often your own list of customers rospects. Controlled circulation lists can be far more effective than subscriber lists. The best lists contain information obtained from subscription questionnaires. Check out compiled lists carefully. Make sure they are frequently maintained. Remember that, in the end, there are no guarantees of list success.
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Houpt, Chuck
Full text: [Zip] Nov/Dec 1982
Negative Prescreening Lifts Response Rates 30-50%
The negative prescreening (NP) concept is looking like an effective new response booster. NP is an advance segmentation method that aims to identify and eliminate disinterested mail recipients before wasting money on them. It involves adverse psychology, role-reversal selling, positive reinforcement, and a self-justifying sense of obligation. The vehicle used solicits the recipient’s advance refusal of a subsequent mailing. But the ”No” option seems to enhance the likelihood of getting a positive response. Tests of the NP concept were made using a word-processed card mailing and a First-Class double postcard. Response, sales, and profits were boosted. Another such effort is now being tested by a catalog marketer of high-ticket women’s fashion. While Daphne Marketing Co. cannot yet project response rates, the differential between test and control samples may be 35%-45%. Both the NP concept and the techniques by which it is implemented are in their infancy. More tests will be mounted, though, and odds are NP will prove extremely valuable to the direct mail industry.
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Alpert, Shell R.
Full text: [Zip] Nov/Dec 1982
Don’t Lose Donors to ”The Quiet Revolution”
Because of a combination of postal subsidies, production technology, management techniques, and the application of direct response marketing, direct mail fund raising has reached an unprecedented high in the past few years. A quiet revolution is occurring among donors, many of whom are quietly ignoring the solicitation. To avoid playing an unwitting part in this revolution, fund raisers can do a number of things. So-called routine mailings should be avoided. Donors should not be able to anticipate the fund raiser’s every move or every appeal. Mailings should be evaluated to be sure that they have not developed too commercial a look. Teaser copy on outside envelopes should be avoided. The format of the mailing should be exciting and interesting. Avoid phony personalizations in the letter, and take care not to call the situation a crisis too often. A timely and appreciative response should be sent to the donor, especially before another appeal is mailed to the same donor. Duplicate mailings should be avoided. A merge/purge system to remove all active $25 and over donors from the prospect mailing program could help reduce complaints.
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Huntsinger, Jerald E.
Full text: [Fund Raising Management] Nov 1982
Mail, telephone program opens accounts at bank
Two mail and telephone campaigns resulted in 3589 new accounts for Credit Commercial de France. Both campaigns were designed to get prospective customers to visit a bank branch or call by phone. In one program, the customer received an offer to pick up a free game at the bank. Calling officers followed up non-responses. Account representatives were offered free gifts for new accounts. In the other program, letters were sent to prospects. A second letter followed up those who did not reply with a free booklet enclosed on facts and festivals of France.
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Anonymous
Full text: [Direct Marketing] Nov 1982
Early discount brokerage campaigns off to slow start
Unlike most banks entering the discount brokerage field, Security Pacific and Union Planters both have solid advertising campaigns. Coupon ads in California newspapers brought 8,000 accounts to Security Pacific. Due to previous direct mail successes, Union Planters intends to use direct mail in its marketing effort.
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Anonymous
Full text: [Bank Marketing] Nov 1982
Cluster Demographics
Cluster data systems are available from several data firms, including Claritas, C.A.C.I., and Donnelley Marketing. Cluster systems group consumers by homogeneous demographic and behavioral characteristics, and by geographical areas, such as blocks, census tracts, zip code areas, cities, counties, states, and regions. Cluster systems are frequently used in marketing campaigns to match products and services with prospective consumers. The clustering techniques used by the 3 data firms differ in geographic focus and in the population characteristics emphasized. Besides providing detailed clusters, each firm also produces combined cluster groupings for clients who do not require detailed breakdowns. Cluster systems can be used to determine business locations, appropriate places for outdoor advertising, and target populations for direct mail advertising. The cost of cluster analysis ranges from as little as $2,500 to as much as $300,000.
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Walsh, Doris
Full text: [American Demographics] Nov 1982
Successful Mailings Require Campaign Budget Projections
Knowing how to calculate the costs of a direct marketing campaign is important to both profit-oriented and non-profit groups trying to determine the feasibility of a project. The basic unit of measurement is cost per thousand (CPM), which is the entire cost of putting 1,000 packages into the mail. Typical costs to be included are the cost of layout and artwork, copy, typesetting/keyline/pasteup, color separations, printing, list rental, list preparation, mailing, and postage. The difficulty in determining the response to a new product makes it advantageous to make best case, worst case, and probable case projections. To establish a benchmark, it is necessary to compare a similar product’s performance. One should work closely with an accountant to estimate break-even, overhead, and other significant amounts. Some mailings are made with break-even or deficit projections, just to develop a list of buyers.
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Januz, Lauren R.
Full text: [Marketing News] Nov 12, 1982
Armed with All the Facts
Although sales promotion expenditures now exceed spending on classic media advertising by a substantial margin, manufacturers still demand detailed justification and pretesting for new advertising campaigns, yet they accept plans for spending larger sums of sales promotion money without benefit of any consultancy with expert market researchers. This is acceptable because many sales promotion techniques are, in practice, methods of direct response marketing. In sales promotion, a vast amount of research into audience reaction to the media advertising is largely unnecessary, because the promotion itself will automatically provide tangible evidence of audience response; for example, a promotion having coupons on a certain brand’s package will automatically assure the coupon promoter that everyone buying the package receives a coupon. Pretesting cannot always prevent disasters, only reduce the odds slightly. Better and fuller use of existing data is all that is needed for market research by people in sales promotion.
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Toop, Alan
Full text: [Marketing] Nov 18, 1982
Ideas for retailers: successful direct mail, as easy as 1-2-3
According to the “rule of three,” there are three elements in a successful ad campaign: the list, the offer, and the follow- through. Direct mail can try to use three other ingredients in their advertising: learning, earning and yearning. But retailers have several distinct advantages over mail order houses including local identity, additional traffic and buying power.
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Raphel, Murray
Full text: [Direct Marketing] Dec 1982
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