Special report/telemarketing: reaching out with telephone and mail
Citibank effectively expanded its geographical range at low cost by offering certificates of deposit for $3,000 via a combined direct mail and telemarketing campaign, using both an incoming 800 number and an outgoing WATS line. On incoming calls, 18% of the bank’s customers and 6% of noncustomers purchased CDs.
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Roman, Murray
Full text: [S & MM. Sales & Marketing Management] Jun 4, 1984
Reaching Out with Telephone and Mail
Citibank’s successful campaign to offer certificates of deposit (CD) to out-of-state customers illustrates the effectiveness of the combined use of telemarketing and direct mail. Citibank’s communicators were trained to provide scripted responses to questions, and to refer complex questions to professional bankers. Out-of-state customers and noncustomers were contacted first with a direct response mailing that offered premium incentives and included an 800 number for respondents to call. An outgoing wide area telephone service (WATS) line was used to contact those who did not use the 800 number. Unlike most 800 operations, Citibank’s communicators actively pursued sales by asking callers if they wanted to reserve a CD. On the incoming 800 calls, 18% of the bank’s current customers signed up for the CD offer. About 1.6% of the current customers bought CDs over the WATS line. A tested script should be used to help communicators present the message, anticipate and answer questions, and close sales quickly.
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Roman, Murray
Full text: [S & MM. Sales & Marketing Management] Jun 4, 1984
ChemLawn Branches out So Profits Grow
Since its founding 15 years ago, ChemLawn Corp. (Columbus, Ohio) has attained the leading position in the residential lawn care market with record sales of $228 million in 1983. ChemLawn’s current developmental strategy involves branching out into tree and shrub care, carpet cleaning, and indoor exterminating. ChemLawn’s expansion strategy is to find new markets, establish its businesses, and then saturate the market. ChemLawn also emphasizes cross-selling to its existing customers. To advertise expanded marketing areas, Ogilvy & Mather Direct (New York) is handling ChemLawn’s $4-million television lawn-care campaign and test campaigns for the 3 new services. Although some critics are skeptical of the expansion’s success, supporters stress the advantages of varied services and the company’s emphasis on quality and workers over profits.
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Levin, Gary
Full text: [Advertising Age] Jun 4, 1984
Direct Marketing Explored at Montreux Meet
At the recent annual Montreux Direct Marketing Symposium and Exhibition, the area of direct marketing for financial services was explored. Emphasis was placed on determining the size of a marketing budget and focusing on how brokers relate to direct marketing. A group of international executives addressed the issue. In order to determine the size of a marketing budget, it is necessary to take a thorough look at the market and then make the smallest valid test possible. The initial plan should include such elements as: 1. the media available, 2. the size of the market, and 3. the relationship of the marketing budget to the anticipated first year’s premium. A number of other direct marketing issues were addressed, including: 1. laser printing for personalization, 2. the loyalty of motor insurance policyholders, 3. the most effective time interval before expiration date of motor insurance that a renewal mailing should be made, and 4. devices to increase response. Despite some pessimism about the future of brokers, many brokers have started their own direct response programs.
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Anonymous
Full text: [National Underwriter] Jun 9, 1984
Admail sells more than stamps
There is an art to developing a good direct mail campaign, he said. Marketing surveys show that most people decide whether to read a direct mail package within as few as 15 seconds, and respond in the first three or four minutes if they are interested. Once someone puts it down, chances are it will be forgotten. “Don’t just send anything, send something that is useful,” Mr.
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KIMBERLEY NOBLE
Full text: [The Globe and Mail] Jun 27, 1984
Sow Now, Reap Later
The value of direct marketing can be fully realized only if it, like advertising, is treated as a long-term investment. Rapid technological developments and the advanced computer techniques now available permit direct marketing to be used to identify new customers and to establish a solid personal relationship with them. Successful direct marketing requires time, money, and human resources. The UK’s Ford has a successful direct marketing program based on its acceptance of a high level of obligation to both existing customers and prospects. Ford’s comprehensive information gathering efforts allow it to specifically target operators interested in only certain types of vehicle. Full dedication to a marketing program is essential. People will be quite willing to supply information if they are offered correct and useful information in return. By developing long-term relationships with customers, companies can receive a constantly updated profile of the ideal customer.
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Robinson, Chris
Full text: [Marketing] Jun 28, 1984
Being Judged by the Cover
A vital function of the envelope in a direct mail campaign is to convey a captivating first impression to the recipient. Lack of effective design often causes such envelopes to be thrown away. Growth in the volume of direct mail has increased the demand for imaginative envelope designs. According to Rob Perritt, senior associate director in charge of promotions at Reader’s Digest, the aim of innovative envelopes is to get the recipient to open them by conveying urgency and real value. Mail order houses have found envelope innovations necessary to keep customers from becoming bored by regular mailings. Various tints, shades, perforations, pull tabs, and windows are possible. Competition is increasing in the envelope business, with large commercial stationery companies providing the greatest threat to established specialist envelope suppliers. Smaller companies find that the money and time needed for quantitative research on different envelopes outweigh the advantages.
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Tisdall, Patricia
Full text: [Marketing] Jun 28, 1984
PPS: ‘A Tiger by the Tail’
Physicians Planning Service Corp. (PPS) has been providing financial and economic services to the medical and dental professions for over 24 years. It markets its services through direct mail and through 700 service representatives. The mailings are sent to medical students, interns, residents, physicians, and dentists in private practice, as well as to other professionals and businesspeople. PPS’ services include: 1. medic-aide disability income, 2. comprehensive group major medical, 3. a $50,000 unsecured loan plan, 4. merchandise and appliance discounts, 5. hotel/motel accommodations, 6. automobile and equipment leasing, and 7. travel planning. PPS’ 2-pronged marketing approach has resulted in over 180,000 physicians joining over the years. George J. Arden founded the company with the belief that he could write a better insurance plan for doctors than was currently available through medical societies and associations. He also saw a need for an association that provided economic benefits.
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Maher, Thomas M.
Full text: [The National Underwriter] Jun 29, 1984
Saturation Bombing: Frequency and Repeated Exposure
Direct mail (DM) may differ less from traditional advertising media than was once thought if the promising results of a new technique, ”saturation bombing,” are any indication. A typical DM campaign using saturation bombing consists of 10 printed pieces mailed first-class at 3-day intervals. The technique is designed to achieve more product awareness than any one piece could do on its own. This is similar to the way traditional commercials or printed advertisements are used. While each individual mailing may focus on one aspect of a product’s benefits, each piece must stand on its own strength. Despite its obvious expense, saturation bombing is more effective than traditional DM, especially when used to promote big-ticket sales items, or when the campaign is directed to a limited, well-defined audience. It is also good for promotions that involve a great deal of information. The technique may next be used with mini-catalogs that will promote the products of a group of diversified merchants.
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Shell, Ernest H.
Full text: [Zip Target Marketing] Jul 1984
Canada Lures Outdoorsmen by Using the Right Bait
Although the Canadian government enjoyed considerable success using direct mail to attract US outdoorsmen over the years, it had neglected the back-end aspects of direct mail. Back-end aspects include the proper exploitation of response cards, leads, and other information developed by direct mail pieces. Tourism Canada was able to make better use of back-end aspects of direct mail with a 2-step process. First, it created a special questionnaire for direct mail delivery. Then, it systematically catalogued and categorized the responses, creating a valuable and versatile database. Information gathered by the questionnaire will allow Tourism Canada to zero-in on specific target audiences. The approach, which also allows accountability for individual direct mail pieces, showing which worked and with which audience, is expected to generate some 90,000 pre-qualified leads from just under one million mailings to US citizens during 1984-1985.
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Bernier, Royal
Full text: [Zip Target Marketing] Jul 1984
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