Mail Calls: Companies Taking Direct Approach to Gain Customers
Until last year, Muzak Corp. of Seattle advertised in magazines with ads showing scenes such as sheep milling about in a bank lobby. The copy suggested that standing in a bank line shouldn’t be like being put out to pasture, and that the music playing softly in the backround would make customers feel better about the wait. Jim Harrison, Muzak’s sales and marketing senior vice president, recalls that the ad was “very cute and crafted in a way that communicated the message.” The problem, he said, was that he couldn’t tell whether the ads were generating new business. (excerpt)
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Updike, Robin
Full text: [Seattle Times] Jan 09, 1989
MAIL CALLS — COMPANIES TAKING DIRECT APPROACH TO GAIN CUSTOMERS
Today [Jim] Harrison is in a better position to gauge the effects of his advertising. He and his new agency, one that specializes only in direct response advertising, are about to launch a mail and complementary print ad campaign in trade magazines. The ads are likely to include toll-free phone numbers or coupons, making it easy for potential customers to find out more about Muzak. Airborne Express, an express package carrier, made a similar decision two years ago when it stopped television advertising in favor of elaborate direct mail campaigns featuring such provocative attention-grabbers as bags full of shredded dollars – a gimmick used to persuade potential customers that they’re wasting money if they don’t use Airborne. Though such complete turnabouts from traditional image and product advertising to direct response marketing are unusual, they help explain why direct response is the fastest growing niche in advertising. With chief executives and shareholders peering ever more closely at the marketing budget, marketing directors are opting for fewer splashy, expensive television and magazine ads and more of what detractors call “junk mail.”
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ROBIN UPDIKE
Full text: [Seattle Times] Jan 9, 1989
Marketing Scene: In Nashville, Where Things Are Looking Up
Mass marketing is having problems, including increasing costs, decreasing returns, and agonizingly thin margins. However, FISI-Madison Financial Corp. (Nashville, Tennessee) and its California affiliate, Benefit Consultants Inc. (BCI) are producing unheard of results, such as response rates as high as 40%-50% and 8%-10% purchase rates, according to Carl E. Brasser, a vice-president for the company. FISI-Madison Financial’s Customer Appreciation Program (CAP), which has been marketed since 1986, is the cause of Brasser’s optimism. Under CAP, The bank provides $1,000 in accidental death coverage at no cost to the customer and allows the customer to sign up for additional coverage in amounts up to $150,000 at competitive group rates. Of 800 institutions that have offered CAP, over 8% of customers buy the product. Some of the reasons for CAP’s success are the totally different approach used, the low pressure, and economies of scale. BCI and FISI-Madison Financial do most of the creative work in-house.
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Maher, Thomas M.
Full text: [National Underwriter] Jan 16, 1989
IRA budgets on increase; transfers, retention hyped
Banks and savings and loans across the country have maintained or increased their advertising budgets for IRAs this season. A bonus rate of 8.20% yielding 8.51% is being advertised by Great Western Bank (Beverly Hills, CA) for its one-year, $100-minimum IRA CD. Bank of America (San Francisco) has doubled its advertising budget and has started its IRA Alert program that notifies customers 30 to 60 days before their retirement dates to offer them information on their investment options. Dominion Bankshares (Roanoke, VA) continues to add to its IRA product line and has recently included a two-year CD. The bank uses direct mail to encourage customers to consolidate their CDs.
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Anonymous
Full text: [Bank Advertising News] Jan 16, 1989
Mediaplus climbing ladder of success
Mediaplus’s 1988 billings totalled $13 million, handled for local clients such as Budget Rent-a-Car of Ottawa, the St. Lawrence Parks Commission, Gandalf Systems Group, Energy 1200, Tartan Homes, Metropolitan Life and ”Destination 88” _ for which work Mediaplus won local and national awards for creative quality. Two weeks ago, Viking Rideau chose Mediaplus as ad agency for the Rideau Centre _ after testing the agency with a number of small assignments, and after a competition with several other agencies, including a couple of Toronto’s big and most seasoned firms. Met Life joined the client list last August for a direct marketing campaign _ which has led Mediaplus to form a new division called ”Directplus” _ a full-service group which will handle strategy planning, creative and co-ordination of all elements of a campaign, whether by mail, tele-marketing, or other direct response means subcontracted to existing specialist firms.
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Alex Dryden
Full text: [The Ottawa Citizen] Jan 18, 1989
Direct Marketing: Making Contact
In spite of a 12% reduction in direct marketing expenditures by the UK holiday and travel industry between January and October 1988, Nationwide Market Research data shows that those spending invested much more than in the preceding year. Up to 90% of the holiday and travel industry’s direct response marketing goes to newspapers and magazines, and it ranks 5th in spending for print direct response advertising. The industry’s methods are less sophisticated than others’: only 2.8% of its ads carry premium incentives compared to 10.8% for all direct response advertisers. Companies are using different strategies to improve their market targeting. Philipa Watts of Trusthouse Forte Hotels says her company has increased below-the-line spending to build lasting relationships with existing and potential clients. Club Mediterranee developed a program that included inserts and follow-ups on proposed leads. British Airways is developing a new Customer Database Marketing System to speed up consumer operations at airports.
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Gerrie, David
Full text: [Marketing] Jan 19, 1989
Chemical Shakes Up Retail Unit
Chemical Bank (New York City, NY) has reorganized its retail banking unit in an attempt to improve cost controls and build a strong identity. Alan M. Silberstein will head the group’s consumer banking division and Thomas Jacob will direct marketing and product management. The reorganization squeezes out senior vice president for branch marketing Barbara A. Sullivan, who was responsible for an ad campaign that won “kudos” as one of the 10 worst commercials of 1988 from “Adweek.”
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Sudo, Philip T
Full text: [American Banker] Jan 25, 1989
DIRECT MARKETING OFFERS NEW TOOL FOR SALES
There are many ways of accumulating such a data base, [Ya'acov Levy] said. One is through “direct response media:” Radio, television and newspapers advertisements containing an offer to write or telephone to get details or order the product or service. That requires people to respond immediately to the ad and, more importantly, gives the marketer the name, address and telephone of the customer for future use in a telephone or mail campaign. In Israel, coupons in ads or on product wrappers is the preferred medium. In the U.S., toll-free numbers, where the business receiving the call picks up its cost, are the preferred medium. George Meyer, deputy director of marketing at Bezek, promised at the seminar that toll free numbers – with the prefix 177 – would soon be available in Israel, as well. He said subscribers would be able to receive statistical data on the type and origin of calls made through the 177 service. Another way strongly advocated by Levy to collect information about potential customers is through catalogues, which enables cusomters to see items for sale and then phone or write in an order withoout leaving home. The time of the catalogue has arrived in Israel, declared Levy, who estimated that a quarter of the population would like to be relieved of the chore of going to the stores.
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By WENDY KANSKY
Full text: [Jerusalem Post] Jan 30, 1989
Detroit’s Direct Route
The big automakers in Detroit are spending a lot of time and money on direct-marketing efforts to sell cars. Videocassettes, custom magazines and even floppy disks have been used in their campaign. The marketing campaign is discussed.
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Fannin, Rebecca
Full text: [Marketing & Media Decisions] Feb 1989
A Budding Success Story …
A $1 million direct marketing campaign has been launched by 800-Flowers, a company founded in 1984 that allows customers to dial a toll-free telephone number for florist delivery service in the US. The promotion campaign is discussed.
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Fannin, Rebecca
Full text: [Marketing & Media Decisions] Feb 1989
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