September 2016

The Omni-Channel Challenge: Getting Your Ship Moving

By Ken DunnDirect Marketing

We’re very proud of our fearless leader and company president Doug Grant. During this year’s GRAPH EXPO, held in Orlando, Florida, Doug was the Keynote Speaker at the Sunday morning Executive Outlook session. His presentation was entitled, “Winning the Omni-Channel Challenge: Inside Westamerica’s Journey.”

In Doug’s presentation he used the illustration of a rudder on a ship. When a ship is anchored, you can turn that rudder all you want and it won’t have any impact. But once your ship is moving forward, you can use that tiny little rudder to guide your ship in the direction you want it to go. In the same way, if we’re standing still in business, we’re going nowhere fast. But if we simply move forward – even slowly at first – we can begin to make small adjustments that may one day have a huge positive impact on our future.

One way we have “simply moved forward” is by accepting the Omni-Channel Challenge. We’ve made adjustments that have had a positive impact on our future. This includes implementing forward thinking marketing strategies. By doing this we’re able to help our clients successfully market their products and services to their clients.

Changing with the Times

Here’s an example of an adjustment we made that has had a positive impact for both our clients and ourselves. Forty years ago we offered direct mail as a good way to reach out to customers. Today, if you understand how to harness the marketing capabilities of both print and online media, direct mail is still a great way to reach people. We know how to use print media to lead current and potential customers to a website. Or visa versa, we can create an online website that can push users to request print collateral.

Direct Mail Done Right

A mail piece printed on heavyweight paper stock or printed using dimensional printing techniques can make your direct mail stand out. The truth is 71% of consumers interviewed said that the print and paper quality of a mail piece impacts their decision to open and read their mail.

And, once the consumer has opened their mail, it’s imperative that the information inside the envelope be relevant to the individual. The proper use of data can ensure that the offer you are making is relevant to the consumer. Research shows that 44% of consumers immediately discard direct mail if it isn’t relevant. Yet 80% say they are more likely to open their mail if it is personalized.

Google Uses Direct Mail

Google has researched the interaction between the consumer and the stimuli that causes the consumer to begin a search to lean more about a product or service. Google calls it ZMOT, the zero moment of truth. It’s the moment when the consumer sees a poster, an outdoor billboard or a direct mail piece and begins to think, “I-want-to-know,” “I-want-to-go,” “I-want-to-do,” or “I-want-to-buy.” This is why Google spends millions of dollars every year creating, printing and mailing direct mail pieces to targeted businesses.

Winning the Omni-Channel Challenge

Since opening the family business, once known as “the Printing Company,” back in 1975, until today, Westamerica Communications has grown by focusing on the needs of our clients. And, it’s by understanding data’s increasing central role in all audience engagements, either in print or online, that we are able to create and execute marketing strategies that increases our client’s success rates.

As Doug said during his Sunday morning Executive Outlook session, “our ship is moving. We’re different today than we were yesterday. We’re still figuring things out, and we’re still turning our rudder to respond to new information and new challenges.”

September 30, 2016

6 Steps to Targeted Marketing for Your Marketing Strategy

By Ken DunnBlog, Financial Marketing, Marketing Strategy

The advantages of targeted marketing seem self-evident, yet many companies still use advertising strategies that would only be current in an episode of Mad Men. Too often in marketing strategy we use a bazooka to do the job of a hypodermic needle.

When you focus on the general market, you end up reaching a lot of people who are uninterested. This “spray and pray” method worked when you didn’t have to prove an ROI. In today’s marketing world, that isn’t relevant. Or smart.

A few weeks ago a national manufacturer decided to send me a sample of their product hoping to gain my business. It was a brightly displayed package and since it was a dimensional piece, it stood out in my mailbox.

There was one BIG problem: It was for pantyhose.

I’m sure there may be a market for people named Adam who wear their product. I just don’t happen to be one of them. They had wasted their money and effort. This mailing was not an example of targeted marketing.

One example of targeting a broad audience is an advertising legend. In the story, the media director of a large agency was presenting to her prospect, a manufacturer of a car steering wheel lock. She claimed she could cut his outdoor advertising in half and still maintain their current results. How? They would only run ads for the auto anti-theft device that commuters would see driving into the high-crime downtown area, not out. She won her agency the account.

That’s targeted marketing.

When you adopt a targeted strategy, your focus is greater, your results are better, and your prospects feel appreciated. And it all starts with defining your targeted customer.

Here are 6 easy steps:

Step One: Start with your current customers: Take a good look at the customers you already have. How old are they? Where do they live? Check out who’s following you on your social channels. These customers are so much more than an opportunity for repeat sales; they’re a wealth of targeted marketing information. Study them. Look for consistencies and you’ll find your focus.

Step Two: Leverage the competition: Do a little recon in your category. Find out what your competition is doing right and who they are reaching. After that, you have a strategic decision to make. You can either go after that same audience or steer clear of them and look for a niche of your own. Either way, you’re focusing in on a specific group.

Step Three: Study your offering: Take a close look at your product or service. List the features and the benefits. Then use that as a springboard to the type of person who would benefit most from what you have to offer. What you have could be good for everyone, but it is more than likely best for a specific target.

Step Four: Use demographics: You can get very focused with every feature you give your audience. What’s their age, their income level, gender and marital status? Are they well educated? What’s their ethnic background and location? The more specifics you choose, the better off you’ll be.

Step Five: Get in their heads: Now that you’ve focused on their demographics dig into their psychographics. How do they feel? What are their priorities in life? Imagine their opinions, interests and lifestyles. This way of thinking may seem like something that would help only your creative department, but it goes much deeper than that. Many companies have looked at psychographic and used them to influence their media strategy and on some occasions, their product development.

Step Six: Once you have your target audience, target them. Craft messages specific to their wants and needs. Develop media placements that hit their cities, zip codes, and even neighborhoods.

Your targeted marketing and marketing strategy will reap wonderful results. You’ll be more efficient and more effective. And you won’t waste time and money sending “Adam” pantyhose. And isn’t that what great marketing is all about?

Sources:

http://www.marketing-magic.biz/workshops/targeted-marketing/tm-2.htm

http://www.thelistinc.com/wp-content/uploads/2013/11/The-Targeting-Advantage.pdf

September 26, 2016

Millennials, Print & 20% Off Greeting Cards

By Ken DunnBlog

You see them with their heads buried in their smart phones. They’re posting on Facebook, sharing a photo of their meal on Instagram and adding a “Snap” to their “Story” on Snapchat. Young people today, especially millennials, are the most connected generation ever. And marketers are looking to find the best way to connect with them.

Based on their smartphone habits, you may think that online, mobile ads and social interaction may be the best way to capture the attention of a millennial. But if you assume that, you’d be wrong.

Research has shown that millennials read books and magazines, read direct mail they receive in their mailbox and clip paper coupons from newspapers.

Millennials, Books and Magazines

A study by Publishing Technology found that millennials living in the U.S. are almost twice as likely to read a print book as an e-book. In addition, millennials would rather acquire their printed books from chain bookstores, used bookstores and public libraries as opposed to online retailers. It seems that millennials place a high importance on touch and personal interaction when it comes to buying and reading a printed book.

In February of 2015, there was a great article in the Washington Post that discussed the passion millennials have for print. In the article a 20-year-old junior at American University, Frank Schembari, said, when talking about a printed book, “I like the feeling of it. I like holding it. It’s not going off. It’s not making sounds.”

And, a University of Washington study found that even when students were given free e-textbooks 25% of the students still bought print versions of the book. Now, remember, these are individuals who have grown up with the Internet, smart phones and online but they still want to read a printed book. And this attitude has had an effect on publishers like HarperCollins and Simon & Schuster. Both companies have reported significant declines in e-book sales.

And when it comes to magazines, 58% of millennials interviewed said they enjoy looking at ads in magazines. And here’s the best part, 49% said they have made a purchase because of something they saw in a magazine.

Millennials and Direct Mail

Research also shows that while millennials spend a lot of time online they’re most likely to ignore pop-up ads, banner ads and email. In fact, millennials and others often consider Internet pop-up ads as an annoying distraction. While millennials may be numb to digital advertising print still grabs their attention. In fact, 82% of millennials say they read retail and department store direct mail. More than three out of four said they read direct mail from grocery stores and more than three in five read direct mail from clothing and accessory stores.

And, when they read their mail, more than 84% of millennials prefer to respond to direct mail by going to the company’s website either on a personal computer or a mobile device. Thus printed ads are a significant driver of web traffic.

Millennials and Greeting Cards

If millennials read mail from retail, department, grocery, clothing and accessory stores then how do you think they’ll feel about receiving a greeting card in the mail?

Think of your favorite millennial who may be turning 21. Would they rather receive an email with a link to an e-card or a Happy Birthday greeting card in the mail?

Speaking of greeting cards, check out our 20% discount on greeting cards.

Millennials, Coupons and Catalogs

According to the 2K16 Valassis® Coupon Intelligence Report, 82% of millennials use coupons from newspaper delivered coupon books, similar to 79% of baby boomers. And 34% of millennials report an increase during the past year in mail coupon usage, significantly higher than Gen X and boomer users.

And when it comes to catalog usage, 54% of millennials say they love and look forward to receiving retail catalogs. With 49% of millennials saying they wish that some companies they do business with had a print catalog. Combine this with the push that catalogs give to online sales and you have a perfect match.

For example, online retailer Bonobos has found that roughly 20% of their first-time customers now place orders after receiving one of the company’s catalogs. And these customers spend 1.5 times longer shopping on its website than those who didn’t receive a catalog.

Why Print is Important

The Centre for Experimental Consumer Psychology at Bangor University used functional magnetic resonance imaging (fMRI) to prove that content delivered in paper form is more stimulating than content delivered in virtual or digital form. Participants were presented with advertising material that was shown both on screen (virtual/digital) and in paper form while the fMRI scanner was running. The researchers found that the printed material created deeper impressions on the brain. The brain perceives physical material to be more genuine, according to the study.

The research clearly shows that millennials are comfortable with books, magazines, direct mail, and newspapers. It also shows that millennials find print to be useful and enjoyable. And we’ve seen that print creates deep and genuine impressions. So, if you want to reach millennials, print must be part of your marketing mix.

And, BTW, don’t forget to check out our 20% discount on greeting cards placed until October 31, 2016.

September 20, 2016

Is Your UX Driving Your Mobile Users Crazy?

By Ken DunnBlog, Financial Marketing, Mobile Apps, User Experience

There’s a lot of mobile user angst out there with mobile apps. If you don’t know definitively that you are NOT driving your mobile users crazy with the user experience (UX) on yours, you probably are.

Being a mobile pain is nothing to beat yourself up about. The mobile landscape is constantly changing as are the needs of its users. However, here are seven tips to keep your mobile users pleased and coming back for more.

Less is always more. The point of a mobile app is for a laser-fine, focused purpose. Your mobile app should be about a single tasks or benefit. It’s not supposed to communicate everything about your company (in fact, if it’s about you, then by definition it’s not about your user). Remember, your app should provide a service. If you can’t say in one sentence what your app does, it should probably be a mobile site instead.

It’s OK to be old. Ever have a smartphone that gets a little long in the tooth way before its time? Too often this is done by developers creating for the cutting- edge phones. Users who have a phone that’s a generation or (gasp) two generations old, end up using apps that their hardware isn’t built to run. It’s OK to be current, but not at the cost of alienating a large percentage of your users. So, be leading edge without being bleeding edge and more people will enjoy what you have to offer.

Be tutorial-free. Say what you want about Apple and the iPhone — and many hardcore mobile critics have — but every device they create is painfully intuitive. Ask someone if they read the user’s manual for their iPhone and they’ll give you that blank, confused look toddlers give you when you play “I’ve got your nose.” You don’t need a user’s manual because the user interface is that simple. Make that simplicity the goal for your user experience. If you think you’ll need a tutorial to guide your users through your mobile offering, you’ve got a problem.

Be welcoming. Requiring user to log on using their Facebook account is cumbersome, obtrusive, and inhospitable. Not to mention there is a growing amount of users who have dropped their Facebook account. There are younger users who have never created one; they live on Instagram or Twitter (Yes, you are now allowed to feel very old).

Is this really necessary? Before you create a native app, ask this vital question. Why are you creating this app? If it’s any version of, “We need to stay current to the mobile trends,” run, don’t walk, away from the project. Creating a web app for the sake of having one can do more harm than good. Native apps are very popular, but they are also very expensive. Look at your goals. If they are achievable with a mobile site, do that instead.

Desktop experts aren’t mobile experts. Building an interface for touches and swipes is dramatically different from building for clicks. It’s like the difference between shooting a bullet and throwing it. Don’t make the common mistake of transferring your desktop UX to mobile. You’ll have users scratching their heads and dropping your app faster than you can keep track.

Make it quick. Users download apps for speed. They expect your app to work as fast or faster than your mobile website. This audience wants to get things done quickly. They’re in line at the grocery store or waiting for the elevator. Every second is vital. That need for speed means your app should be responsive. Make them wait too long and they will disengage, forget they have the app on their phone and never come back.

The long track to mobile success is also twisty and narrow. Give it your time, discipline and patience to get it right. When you surprise and delight your user, they will let you into their mobile world, and you will become a vital part of their lives. And that makes all the time, discipline and patience worth it — and then some.

Sources:

http://seventablets.com/blog/3-mobile-app-features-that-drive-users-crazy-and-you-should-avoid/

http://www.sitepoint.com/7-mobile-ux-mistakes/

http://www.mrc-productivity.com/blog/2013/05/7-common-mobile-mistakes-that-drive-users-crazy/

September 19, 2016

Mistakes Not to Make in ROI Reporting

By Ken DunnBlog

Weeks ago I was having lunch with a young colleague. He was beaming. The young man gleefully announced that his latest marketing campaign got him $140,000 in new business and only cost him $70,000. “We generated 100% ROI.”

My reaction might have been a smile, but it was more of a grimace.

The poor guy had made a major and common mistake. As with any business, there are expenses. He had mistaken revenue for profit. When you factor in his profit margins, his Return On Investment could be anything from 50% to nothing at all.

Finding your true ROI can be a tricky game. The math may be more complicated than my young agency owner, but it can be done and used as a vital tool in your business. Here are a few mistakes that people commonly make when calculating their ROI.

Playing down the costs: There are direct costs of any marketing efforts, but don’t forget the indirect costs of wages, benefits of the employees involved in the marketing and other overhead.

Playing up the benefits: When well executed, many campaigns will improve your morale, work environment and reputation. But there are usually more than one marketing effort going on at one time. If you don’t make any attempts to isolate the impact of the marketing effort you’re measuring, you may be overstating the benefits.

That pesky inflation thing: When projecting your benefits years into the future, don’t forget a very important factor: It’s in the future. A dollar even a few years from now will be worth less than it is now. Factor in a discount on future benefits and your numbers will be much more accurate.

Forgetting to get metric consensus: With any large effort, there will be stakeholders, many stakeholders. Be sure to collaborate or at least seek approval of the metrics you are using to gauge your success. There’s nothing more disappointing than spending hours calculating your ROI only to have a person who wasn’t involved tear it down. If you get people on board at the beginning, they will still be with you in the end.

Seeing all benefits as quantifiable: When certain metrics aren’t easy to measure, like increased sales or additional projects, they aren’t easy to estimate. Others, like professional development of the team, simply aren’t. Now this doesn’t mean that you can’t measure these benefits, just know that when your metrics aren’t very measurable, your precision on your ROI reporting will be diminished. It’s up to you on how and what you wish to measure.

Having your ROI influence your budget: Your ROI should never be used when calculating your future budgets. It is a recipe for failure. The ROI for a campaign is a gauge on past successes to predict future potential. Your ROI is a report, not a crystal ball.

Measuring what can’t be measured: When your evidence may be suspect, when your outcome metrics are nowhere to be found, or when you can isolate this marketing effort from others, calculating your ROI won’t be worth the effort. And that’s OK. This is advertising; there are things that you should still create, even if you can’t measure them.

The Wrap-up

Measuring your ROI isn’t easy. It isn’t perfect. You may see it assume sort of mathematical dark magic. You may see it as the vital tool for insights that will lead to smart future business decisions. Either way, when you choose to measure ROI, make sure you avoid the pitfalls.

Get a better return on your ROI reporting. That way you won’t spout off false results at a business lunch. Although in that particular instance, I tried to cheer my young friend up by taking care of the check.

And I didn’t bother trying to calculate the ROI on that decision.

Sources:

https://hbr.org/2015/04/the-most-common-mistake-people-make-in-calculating-roi

http://www.mcbassi.com/wp/resources/pdfs/NineROIMistakes.pdf

September 12, 2016

What the Heck is Loan Generation Anyway?

By Ken DunnFinancial Marketing, Marketing Research, Marketing Strategy

Imagine a marketing program that tells you the customers that qualify for loans. All loans. Auto, home, credit cards and personal loans would be made available to the right customers. This results in better quality leading.

Balances are higher.

Interest rates are higher.

And credit scores average 720.

But it doesn’t stop there. Because this program doesn’t just tell you about these loans. This program tells customers about the loans in unique and dramatic ways.

The marketing is targeted.

Here’s an example. Say there’s a member who hasn’t purchased a car for over 24 months. That person would receive Next Car Purchase marketing materials letting them know they are qualified for a low-interest loan for their next car purchase. Imagine another person who just financed a car. That person would get messaging letting them know they can refinance at a lower rate. This form of targeted messaging is put to work for home loans, credit cards and personal loans as well.

The messaging reaches multiple channels.

You will reach your customers through email, direct mail, your website, your branches, call centers and even mobile. Smartphones open up a wealth of possibilities in these specific situations. Imagine getting financing for your car, via your smartphone, while on the lot. This form of loan marketing and processing is seamless, flexible and unprecedented.

The process is turnkey.

From tailored letters that help increase response rates to detailed ROI and analysis, this program is made to make things easier. Every piece of communication is FCRA/FACT compliant, and every channel is built to work together. And since these prospects are prescreened and targeted, you’ll have a campaign that is efficient and effective.

Starting is easy.

Taking on this program offers tremendous opportunity with minimal personnel. It all boils down to six simple steps:

The Lead Generation team digs into your membership and finds the credit quality and loan type you need.
They will then collaborate with you to develop a tailored and personalized marketing strategy.
The team will send offers to the right people, with the right message using the right channels
You happily close the loans resulting from your targeted offers.
You follow up with your members.
We conduct in-depth ROI analysis on your full campaign.

The detailed analysis is one of the big things make this program so powerful. There was a time when a marketer’s in-depth analysis on the effectiveness of their advertising campaigns involved waiting for the phone to ring or talking to the salespeople. Those days are happily over, and we are all better marketers because of it.

Sending out your messaging used to be the end. Now it’s when the fun begins. You can track everything. You can see what works and what doesn’t. Most importantly, you can take that information into your next campaign.

People used to spend thousands on focus groups and surveys. They’d sit behind one-way glass, eat bad catered food and listen intently to people who knew they were in a focus group. The process tainted the answers.

Now what works and what doesn’t is all right there. You can quickly divert the most funds to the most effective message and medium. You are now in the know and knowledge is — as they say — power.

The charts and graphs in this program present your results in stunning and easy to analyze detail. This analysis can everything from the channels you use to the way you offer a call to action to colors used in the background.

So check out Loan Generation. Your loan acquisition costs will go down. Your loan volume will go up while your relationships with your members will deepen. And that is the best proof of success you can achieve.

September 5, 2016