Reporting to you LIVE, from 30,000 feet! A Truth to Successful Marketing: Multiple Touch, Multiple Channels & Multiple Cycles

As I wing my way back from MN where I've been attending a 2-day meeting at our corporate headquarters in MN (ooooofta!), I thought it would be a good idea to write a quick editorial on a very important topic.

The offer and the list are still the most important elements of any member acquisition effort. However, the days of sending out one direct mail piece or making one phone call, and expecting that one effort to be singularly profitable are declining...if not simply over.

Today, to have a successful campaign you have to use multiple channels, email/direct mail/telemarketing/etc., multiple times during a singular initiative to even hope of  being somewhat successful. 

My experience with my clients finds that we can, on average, increase the response rate of a member acquisition program (by as much as 50%) by following up a direct mail piece with a series of emails.

We've also recommend the use of telemarketing as one of the final efforts in renewal programs, after a series of emails and letters. 

Surprising Results from a Recent Study - Students and Young Professionals are Influenced by Direct Mail

Like all marketers, we are constantly evaluating which channel seems most appropriate in delivering our offer. Here at MGI, we’re finding that targeting specific niches using multiple channels with multiple touches dramatically increases response rates.

We’re also always hearing about the demise of direct mail. Well, if you take to heart the results of a 2008 study reported by Exact Target, you’ll realize that direct mail is still a strong channel through which you can deliver your message – even to younger audiences.

You’ll see that its not about using anyone channel in so much as it is about using the right channel.

Here is a summary of the results, as reported in Exact Target’s 2008 Channel Preference Survey of 1500 internet users age 15 to 65+ who were asked questions about their attitudes and usage of one-to-one communication channels. Given the age span, researchers were able to cluster responses by age and reported the results by 6 “Personas:”

1. Wired – young males ages 18 to 34, no children, college educated with a minimum annual income of $35,000. Spend an average of 8 hours/day on their computers with high internet and email usage. Use of text messaging, social networks and IM are above average. Big concurrent media users. View different channels by perceived level of urgency: SMS for financial alerts and travel changes; email for promotions, account updates, etc. They tend to use phone and email first when communicating for personal reasons. Avid on-line shoppers and influenced to shop through email. Ads and messaging through social networks are not appreciated. Favorable attitude toward direct mail.

Marketer Takeaway – use the right channel for the right communication.

2. Young Homemakers – young women between the ages of 18 and 34 who consider “homemaker” to be their primary occupation, with annual household income of at least $35,000. Primarily use email for personal communication (58%), but also use text messaging and IM to a much lesser extent. Some concurrent media usage. They do participate in social networks and don’t seem to welcome advertising through this channel. Over 72% have been influenced to purchase by direct mail.

Marketer Takeaway – personal communication and control is a big thing. “Build opt-in relationship with this group for email, or leverage their affinity to direct mail with relevant, helpful information…” (pg. 6)

3. Retired – exclusively retirees and includes both men and women, but skewed toward men (57%). 80% attended college and 41% received at least a Bachelor’s degree. Spend seven hours a day on average watching TV. Not big concurrent media users. Spend a “significant amount of time” (pg 6) reading newspapers and books. 2.5 times more likely to call than to write. Small percentage (3%) have adopted text messaging and IM as primary communication tools. 81% have purchased online. Direct mail has influenced 90% to make a purchase. 73% reported to being influenced by email to make a purchase.

Marketer Takeaway – stay with direct mail but now use email.

4. College Students – primarily 18 to 24 years of age (but 10% of the sample were older). Big concurrent media users, with heavy internet usage as well as spending “considerable time reading books, listening to music and watching movies” (pg. 7). Heavy social network users (64% reported that they regularly participate) and use IM and texting. College women are 9% more likely to purchase online than average. Direct mail and email have influenced 55% and 50% respectively to make a purchase. Permission is a big deal for this spam-savvy group.

Marketer Takeaway – keep personal and business promotions separate.

5. Teens – high-school students between 15 and 17 years of age. Big screen-based media users, usually accessing multiple channels concurrently (I can personally attest to this as I do have a 16 year-old). Big users of text messaging, IM and social networking sites. Interesting note that “female teens spending more time on email and males spending more time with IM” (pg 9). Surprisingly, “Teens see direct mail as the most appropriate channel for marketers to communicate with them. 58% say they have been influenced by Direct Mail to make a purchase” (pg. 10).

Marketer Takeaway – teens are more likely to be influenced to make a purchase by direct mail than any other method.

6. Established Pros – professionals employed full-time, age 35+, annual income greater than $75,000. “…moderate media consumers” (pg. 10). Online many times a day, typically more often at work than at home. Prefer the telephone when communicating with friends. Most frequently use email to communicate. When compared with other groups, use of digital media is low. Big online shoppers. 94% have made a purchase as the result of a direct marketing campaign. 90% have been influenced by direct mail.

Marketer Takeaway – “…it’s about email and direct mail…and that’s it” (pg. 11).

If you’d like a copy of this whitepaper, go to www.exacttarget.com.

The "Right Mix" of Direct Mail and E-Mail and Frequency Produces Incredible Results

In the October, 2009 'Tipster," my good friend Tony Rossell, Sr VP of MGI, wrote about the incredible results we're seeing when we combine both direct mail and email together. In Tony's words, here is a quick review of the program and the results.

Working with one client organization that offers institutional membership, we put these principles to the test. We found that when we appropriately integrated these components, response rates and program economics really popped.

In the first test, we developed a split test and measured results using channel integration, connecting with prospective members through multiple media. We split our audience into two segments. One received only a direct-mail solicitation. The second received the same direct-mail package, and then a follow-up email with a link to an online microsite that provided more details about the benefits of membership. The combined mail and email group produced an 87% lift in overall response.

In a subsequent campaign, we based our control on the “winning” mail and email effort. Then, as a test, we added two additional emails to the mix with links to microsites containing exclusive and useful content.The first content microsite featured specfic answers to frequently asked questions prospective members might have on how to access funds from the American Recovery and Reinvestment Act.The second content microsite offered a webinar sharing a detailed explanation of how the Act could help prospective members.In addition to providing content, each element of the campaign focused on moving a prospect to a decision to join.The test group that included the additional online content was the decisive winner. Allowing for a statistical margin of error, the test group outperformed the control group by over 300%.

What did we learn? First, just as in an exercise program, intensity is an important component in a marketing strategy. More touches delivering valuable content over a short period of time gets prospects' attention and helps convert them to members. In addition, it is key to have all of the communications push toward a membership sale and not simply provide good information. The proper integration of frequency with content, channels, and intensity clearly produced the greatest ROI.

Please feel free to contact me if you'd like a little more detail.