Guest Post by Bill Michael, Xerox Digital Printing Specialist
As we prepare to tie the bow on 2013, we anxiously look ahead to what we hope will be a very promising 2014. While the new year brings a sense of unknown, and with the unknown comes fear…it also brings hope, optimism, and ambition. If you are like 45% of Americans, you will make a New Year’s resolution this year. Most will involve losing weight, getting organized, saving money or quitting smoking. And most, sadly, will not be maintained as the calendar flips to February.
So let’s try something here. In addition to making a New Year’s resolution for yourself, let’s also make one for your business. And let’s try our damndest to achieve it! And if I may make a recommendation, let’s focus our resolution on marketing communications that better reach, and engage, your customers.
In my last post, I spoke about the effectiveness of print as a marketing channel. To quickly recap, consumers are exposed to an enormous amount of marketing messages each day….over 5,000 to be exact. And while the inbox emails are piling up, the physical mail consumers are bringing in from the mailbox is dwindling.
98% of Americans check their mailboxes every day with roughly 80% of all physical mail getting opened. This helps to explain why printed direct mailers have an average response rate that is forty times higher than email.
What does this mean to you?
So let’s put this into context. What’s your business? Are you an academic institution recruiting incoming high school students? A local restaurant trying to reach new patrons? An auto dealer trying to clear your inventory? An IT solution company promoting your savvy technical know-how? Well, how would you like to attend a tradeshow where all of your customer’s attend, but none of your competitor’s do? As Joe Pulizzi explains, “that’s where we are with print today. All your customers are still getting mail, but they are getting less and less of it.” This is a great opportunity, but to truly take advantage you need to have some sort of customer database in place.
Personalization matters.
A study featured on Forbes earlier this year captured my attention, and I thought it was worth sharing. In it, 61% of US consumers said they feel more positive about a brand when marketing messages are personalized. In that same study, 44% said they are less responsive to non-personalized (think mass-marketing) messages. Also noteworthy: 53% are more likely to purchase when a brand uses personalization.
So if you’re keeping score at home, by leveraging personalization AND print communications, you are:
- Competing for consumer attention in a channel that has fewer distractions,
- Utilizing a medium which has been shown to achieve greater response rates, and
- When tailored to the recipient with relevant content, are viewed favorably and are more likely to lead to purchasing decisions.
Doing this, however, starts with having a database in place. And just like a resolution to lose 15 pounds, nobody ever said improving your customer communications was easy! A resolution to maintain and leverage a database requires a strategic vision, commitment and, of course, a budget. Here are a few ways you can get started:
1. Know what to collect
Maybe you already have the foundational pieces to your database in place. If so, congratulations – you are well on your way! If you’re just starting out, it’s important to have a grasp of exactly what information you want to collect. This will prove to be critical as you start to create your customer communications and tailor them to the recipient.
Of course there is the obvious: You will need basic contact details (first name, last name, prefix, address, city, state, zip code, telephone number). But then there are the secondary and tertiary levels of detail that, when properly leveraged, can really make a difference capturing the attention of the recipient. This information may include the recipients’ business sector, past purchase history, birthday, date their product lease or warranty expires, income level…and even general interests or favorite sports. With this data at your disposal, the possibilities are nearly endless in terms of what type of printed communication you can create.
I know what you are thinking. How on earth am I supposed to get some of that information? How can I possibly know what my customers and prospects consider to be their favorite sport? Great question! Continue reading…
2. Know where to look
Knowing where to look to get the information is just as important as knowing what to collect! And by this, I mean a few different things. First of all, it’s important to note that creating a database does not necessarily have to be a time-exhaustive and manual process. Databases are becoming increasingly affordable, and depending on the level of detail and depth you are looking for, can be purchased for under one-hundred dollars. Obviously, as you start adding more demographics and qualifications, the database becomes more expensive…but this at least gives you a starting point.
If you are not interested in purchasing a database and would rather utilize a home-grown list, then continue reading and please pause to give yourself a pat on the back. While more challenging, you can find comfort in knowing your database will be relevant and likely contain contacts that have opted-in and confirmed they are interested in your products and services.
3. Building and Maintaining your database
There are plenty of places to look and ways to gather the information you need for your database. Here are some ideas to get you started:
a) This past May, an Open Data policy was signed to make data more readily available and to help fuel economic growth. While the information has always been available to some degree, this commitment aims to increase the volume and accessibility of the data, providing huge opportunities for your business at no cost. You can check out the full press release here, or visit the constantly-updating data.gov.
b) Conducting in-store or online surveys are a great way to collect consumer information. These can be done through various promotions where a consumer is incentivized to provide information (ie – free gifts or a percentage off their order). In fact, a 2013 study titled “Engaging with Digital Consumers” found that 45% of consumers were willing to trade information for incentives tailored to their shopping habits.
c) Customer loyalty programs are another great way to collect information, as they encourage relationship building and reward customer behavior while building a robust database of customer preferences and spending habits.
4. Think creatively
As I mentioned, the more robust your database – the more flexibility you have when creating a unique customer communication. But even a minimal database can be ultra-effective if leveraged properly. The key is thinking smartly and creatively! Here are a few examples of print campaigns that effectively leveraged databases – both big and small:
a. A local restaurant chain used a special birthday promotion to help them build a database and very effective marketing campaign. They offered $10 birthday discounts to 100,000 customers who filled out a birthday club registration card while dining at the restaurant. From this, a database was created and special birthday cards were printed and mailed to each of the card holders. To the delight of the restaurant, 41% of the cards were redeemed, which produced nearly $1.5 million dollars in sales. And since nobody enjoys eating alone, each birthday patron was accompanied by an average of 1.8 additional guests, who paid full price for their meals.
b. A car dealer created a highly-personalized print piece to boost vehicle trade-in sales, leveraging information on consumers’ recent purchase history. The front of the mailer included an image of your car model, complete with the right options, the right color and even your license plate number! Using an algorithm, the inside of the mailer featured three very attractive vehicle trade-in offers. The price points were computed based on the known trade-in value of your vehicle, taking into consideration its mileage and service history. This printed piece generated a 50% response rate, with 16-22% taking advantage of the trade-in opportunity.
c. A multi-location childcare company wanted to increase the number of families that entrusted them with their children, so they used readily available data to create a very smart, and effective, campaign. This childcare knew that parents typically prefer to use facilities within a few miles of their homes, so they specifically targeting families within a certain mileage radius of their locations. Two versions were created, one for families with children 0 to 4 years of age, and another version that targeted families with children aged 4 to 12. Based on the version as well as the gender of the child, the mailer was designed to include specific messaging and gender-appropriate imagery. All versions included a map showing the exact route the parents could take to get to the nearest childcare facility. By taking advantage of basic database information, this campaign generated a 2,200% ROI (based on new enrollment and an average childcare service length of four years). The opportunities through data and mapping personalization are quite extensive!
5. Engage the experts!
Database marketing is a challenging, yet rewarding venture that can yield tremendous business results when done properly. But keep in mind that you don’t have to go through this exercise alone! There are a wealth of print service providers and marketing agencies that have experience and expertise in these types of marketing communications. They can help you with your database needs, all while creating a strategic campaign designed to take advantage of your data and achieve your business objectives. Don’t be afraid to tap into the services of a professional to assist you!
About The Author
Bill Michael is an eMarketing Manager for Xerox Corporation. He received his Bachelors of Science in New Media Publishing from the School of Print Media at the Rochester Institute of Technology, and is currently pursuing his Masters of Science from RIT. When he isn’t at work or school, Bill enjoys running, basketball, football, table tennis, spending time with his fiancée and his energetic dog. Connect with Bill on LinkedIn.