Category: Direct Response

Improving the response rates in every direct marketing medium: Print, Online, Direct Mail and Broadcast

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Follow-through is crucial to higher search conversion rates

Yesterday I sent a results report to a client for a pay-per-click (PPC) search  lead generation campaign that my team managed. It showed a performance that was five times higher, in terms of cost-per-lead, than a traditional direct mail campaign. That’s pretty cool. But as I sent the report, I was reminded of this recent report from eMarketer:

eMarketer summary of favored direct response media

It shows how a majority of marketers favor direct mail for lead generation versus search marketing. Scott Brinker was rightly puzzled by this, in a recent post. I agree with Scott that a chief reason for this strong preference for direct mail over search engine marketing (34% versus 8%), when it comes to customer acquisition, is the difficulty many marketers face in getting search prospects to convert.

Indeed, if the lead acquisition campaign my team was leading was instead a customer acquisition campaign, the results would likely have been closer to a dead heat with direct mail in terms of ROI.

But what does that mean? Just that we’re not trying hard enough. As marketers, I feel we cannot allow so many opportunities for conversion to click away from landing pages. There are many tested techniques for improving conversions (new offers, testimonials, guarantees, Web 2.0 landing page design). There are also spectacular new tools to do multivariate testing of these techniques.

Let’s take direct mail for what it should be. It is (usually) the customer acquisition benchmark. Now let’s shift more resources online, but apply them where it really counts: To create campaigns that actually surpass the mail in delivering a strong ROI.

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Survey of marketing tech types finds ROI strongest for search and internal email tactics

A recent survey has shed light on what one breed of marketing professionals are perceiving as good bets in terms of measurable return on investment (ROI). The tactic leading the pack is email, sent to an internal — or “house” — list. This is hardly surprising, since it is a relatively low-cost way to announce new products and deals to customers and prospects. What is more interested is seeing how both organic search marketing (i.e., search engine optimization) and pay-per-click (PPC) search marketing are viewed by these same executives compared to other tactics. Here is the full run-down:

Perceived ROI by tactic, from 3,000+ search marketing pros

Considering the search-centric executives surveyed (these were 3,186 “in-house search marketers or agency executives,” as reported in eMarketer.com‘s ROI for Select Marketing Tactics according to US Search Marketers), it’s not surprising both are regarded highly. Both are deemed as “Good” investments in respect to the return they typically provide by one out of every three respondents, and another third (34% total) considered one of these two tactics “Strongest” in terms of ROI.

This would be a glowing assessment of search when compared with other tactics, if only PPC weren’t also deemed as “highly variable” by 28% of respondents. Considering how much control one has on the risks and rewards of PPC, this makes me wonder if that measurement isn’t the voice of a minority who either hasn’t conducted a PPC campaign or hasn’t done it properly.

The booby prize goes to online advertising (“banners, etc.”), deemed “Low Value” by 43% of the group. With opinions of online ads being this negative, is it any wonder ad networks are scrambling to sweeten the kitty with more behaviorally-focused targeting?

What is your response to these numbers?

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Four secrets to online video demos that break sales records

A friend of mine got his start in marketing as a carnival pitchman. He would travel the country, selling electric blenders from a dusty demo booth. He was good. Really good. He once told me that a key to success on a highly competitive midway was being sure to gather a large crowd. In carny lingo this is called building a tip.

The web has replaced the carnival back lot. Search engines, online ads and other techniques do the job of building a tip. And once a visitor arrives at a site, today it’s often a video that gives the pitch.

I was blown away recently by just such an online pitch. It was for Jawbone, a noise-canceling Bluetooth cell phone earpiece. Below is a link to the site, where you can watch the full video:

Jawbone Video Demo Page

If you’re like me, you were immediately sucked into the demo. That’s a key to a good pitch. Lead strong, without ever overdoing it and scaring your tip away. Here are three other things this video does right:

  • Feature a pitchman (or woman) — Selling is always one-to-one, whether it’s to a throng of carnival revelers or to thousands of isolated web visitors. Similar to other direct sales media, such as direct mail, you cannot achieve record-breaking sales success online unless you are persistent in hammering away at the value of the product. A disembodied voice-over cannot make the necessary level of personal connection.
  • Use drama — People buy things because it makes them feel good. There is pleasure in finding something that can improve a life. Whenever possible, illustrate dramatically how your product can do this. On the midway, my friend would chew up nuts and bolts in his blender. It was a loud, suspenseful, almost scary way to demonstrate power and durability. Then he’d replace the metal blender carafe for a glass one and cram it with fruits and vegetables — pits, stems and all. In what seemed like an instant he had made fruit smoothie samples for the audience, further showing the machine’s power and versatility. My friend made this device seem almost magical.
  • Build to a strong finish — Selling is ultimately about theater. That means you should follow the same story arc most commonly used in entertainment. Bring your audience’s interest to a crescendo. Work their emotions until they cannot imagine what will happen next, and are hanging on every word and new development. Then make sure they understand that when your pitch ends, they are expected to take out their wallets. If you’ve done your job right, they will!

Ironically, last month I stumbled across this YouTube video. It’s for a high-powered blender, not unlike the kind my friend sold back in his pitchman days. This video breaks all of the rules of a good demo. I’m not surprised that one and only comment left at the bottom of the video reads as follows:

The Vitamix may be a good machine. But there is no way I’m paying $400 dollars for a stupid blender. I don’t care how good it is. If I had Bill Gates money I wouldn’t spend that much for a blender. I’m sure there’s a machine out there that’s just as good with a much nicer price. And I’m going to keep searching until I find it.

Ouch! Sorry, Vitamix. While showing all the tricks that this blender can perform, you failed to sufficiently build its value. You’d never survive a day on the midway.

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Sponsored SMS bulletins show promise

New media consultant and columnist Steve Smith speculated recently in MediaPost that we will soon be receiving many more sponsored messages with our cell phone’s text bulletins. These text bulletins, also known as SMS messages, are the 140-character packets that helped Justine Ezarik rack up a 300-page AT&T cell phone bill. (She reports that Twitter and the SMS feature of Facebook were the biggest culprits. Each message sent and received was separately itemized.)

The good news is these messages will be extremely targeted, and are “opted into” in exchange for the content received. An example cited by Smith is NASCAR race updates, sent to the 200,000 subscribers to this branded program. He explains that if a supermarket chain would want to target those interested in NASCAR, “There is enough mass there to net perhaps 80,000 users in a general geographic region.”

That’s enough to make quite an impact. Especially since response rates are impressively high.

Although the initial calls to action must be quite brief — 20 to 80 characters — the extremely targeted nature of the messages helps response. A “response” is usually hitting reply, to receive a full (up to 140 characters) expansion of the offer and a URL to click on. This graphic , provided by the MoVoxx site, helps illustrate the typical process:

How InTxt by MoVoxx works

Alec Andronikov, who is the managing partner of MoVoxx, says that of the many billions of SMS messages sent each month, somewhere around 500 million of them are some kind of publisher-pushed alert. And each could conceivably be sponsored. Smith continues:

Right now, [Andronikov] claims about 3.5 million uniques with sports, travel, dating and newspapers comprising the largest content categories. … Andronikov claims a response rate of 2.5% to 4% on the SMS ads.

That means a hypothetical, regionally-based supermarket chain running a NASCAR promotion could get their entire message in front of at least 2,000 fans (80,000 recipients of the initial, sponsored message multiplied by a 2.5% response rate). If the offer is compelling enough, this can win the chain hundreds of new customers.

The ability to target consumers by age, gender and zip code — as well as areas of personal interest, as implied by the content to which a consumer subscribes — promises a way to take the junk out of junk text messages.

Through testing we’ll soon see whether these campaigns “have legs” — whether they can generate enough of a return on investment to make them a smart, new marketing tactic.

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Growth of out of home ads reflects our fragmented media consumption

Physicists tell us the universe is ever-expanding, a concept that can make the mind reel. Advertisers trying to reach their target audience know this feeling well, as media alternatives continually fragment and multiply. One solution: Forget about media as we would ordinarily think about them and look to the places your market congregates as the medium itself.

I’m only a recent convert to the power of out of home advertising, but that only seems to make me more of a zealot. Here are three examples worth filing away in your new media mental database:

  • Billboards that greet you by name — Tested last year and rolled out in the April of 2007, the Mini Cooper Motorby program is ingenious. Have owners register online, and receive a free key fob. When that key fob gets within 500 feet of a billboard, it triggers a personalized message. The billboard is 5 feet tall and 33 feet wide. My only questions: What are the results? And how are they translated to a true ROI?
  • Virtual billboards, Second Life-style — If an ad is on the side of a building, but that building is on Second Life, is that an interactive ad or out of home? A little of both, because it is far more interactive (try clicking through the side of a real building without getting injured or arrested), but has the same ambient quality of the real world. The biggest down-side: Ads are everywhere in Second Life.
  • Literally touch your consumers as they drink their coffee — Coffee cup sleeves have come of age. According to BriteVision, an industry leader in their production and distribution (they have their own ad network of coffee shops), the average consumer spends 49 minutes with their “Ad-Sleeve,” what an average recall of the ad at two-thirds (65%). The biggest up-side: Since many cafes offer WiFi, providing a URL can help measure effectiveness and reach an upscale segment of consumers. You can also include a phone number or short code for a mobile marketing play.

The reach and creative potential with out of home are a couple of reasons it is growing when other media types are stagnant or shrinking. According to the OAAA, revenue for out-of-home advertising so far this year has increased by 7.9% (within a rounding error of the growth seen last year, and the year before). This projection for 2007 is based on spending in the first six months of the year. The graphic below shows prior growth.

Growth of out of home this year is projected again at roughly 8 percent

All of this is great news for brands that want to make a difference. There are many ways to truly involve consumers — some quite high tech, some that are extremely “out there,” and some that are frankly both. It all makes for an interesting ride with plenty to see and do.