By Mindy Charski

How do you connect customers who are literally out of reach? It’s a challenge Anritsu Company faced when promoting its BTS Master Base Station Analyzer, which tests the quality of a cell tower’s base station. After all, many in the campaign’s target audience — which included U.S.-based technicians and network managers at four top cellular companies — spend much of the day in the field.

“When you have a customer who is so busy and in and out of the office all the time, it’s pretty hard to know which way you’re going to be able to reach them,” says Katherine Van Diepen, Anritsu’s director of Marketing Communications.

So the Morgan Hill, Calif.–based company created an integrated marketing campaign for its lead generation to 1,417 of its contacts. The effort was created by a local agency, Beasley Direct Marketing.

A dimensional mailer arrived first and included a letter, additional product information and a response card to set up an in-person product demonstration. An e-mail followed a week later, and a high dose of telemarketing began soon after. Prospects also could request a demo via a personalized landing page.

The result? Total captured leads from the mailer and e-mail combined (i.e., people who completed the form and requested more information) was 4 percent. That climbed to 8.6 percent with the telemarketing efforts.

Van Diepen says a sale valued in the millions also resulted from the campaign, with additional potential sales added to the pipeline.

Why the strategy worked
Four key aspects of the Anritsu campaign contributed to its success:

1. Clever dimensional mail. The box stood out because it looked exactly like the product itself with images on every side, including depictions of buttons and ports. “The benefits of our product are it’s smaller, more portable and battery operated,” Van Diepen says. “We wanted to show its dimensions and how easy it is to hold to give customers a true product experience. They also saved the box to show others in the company.”

2. Skilled telemarketers. Anritsu hired Direct Marketing Partners to manage the telemarketing effort. The callers set up appointments with both prospects who had and hadn’t responded off the list. They discerned which targets were no longer appropriate and contacted new prospects whose names they received through referrals on the original calls.

3. Personalization. The recipient’s first name appeared on nearly every campaign element. “We know from experience and all the research that personalization on campaigns can increase response rates from 50 to 130 percent,” Van Diepen says. The product benefits were also tailored to each carrier’s technology. “We wanted to let them know we had the solution that would address their specific technology,” she says.

4. An enticing giveaway. Targets would receive a free MP3 player at the demo, which Van Diepen describes as “a door opener.” Some carriers ban such gifts, but by loading a podcast about the product onto the player, the company transformed a giveaway into acceptable collateral.

Do you have a similar success story to share? Submit it to our Brag Room.

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By Christine Hansen

Lumps in your gravy? Not so good. But when found in direct mail, lumps generate curiosity and demand attention.

AlphaGraphics, for example, scored an impressive 21-percent response rate by including lumpy, or dimensional, mail in a recent multichannel campaign.

“It’s more important than ever to do something unique in your approach that will attract consumer attention,” says Jesse Himsworth, AlphaGraphics channel marketing manager.

The marketing firm, which has more than 260 owner-operated locations worldwide, sent a branded Rubik’s Cube to 1,880 customers and prequalified prospects to showcase its digital color and direct mail capabilities.

The dimensional piece included a personalized insert outlining the company’s key benefits and directing recipients to a personalized URL. Once visitors arrived at the PURL, they were asked to complete a brief survey regarding marketing service needs. Upon completion, visitors were offered their choice of a $20 gift card from one of three stores.

How follow-up added another dimension
The visit to a PURL also generated an automatic e-mail to that recipient’s AlphaGraphics sales representative. Within four hours, the sales representative would call the lead to set up an appointment and deliver the gift card.

“Our owners are extremely busy people, meeting impossible deadlines day in and out,” Himsworth says. “The dimensional piece was a way for us to help them attract customer attention and gave them a turnkey solution so they could really focus their energy on sales.”

That’s why AlphaGraphics also supported the campaign with webinars on best practices for building lists, a sales process plan with a timeline for pre-calls, mailings and post-calls, and suggestions for what to say during pre- and post-calls.

Himsworth says the centers that adhered strictly to the sales process plan achieved the highest responses. Too, some of the centers made the sales representatives responsible for the costs of the direct mail pieces, which motivated the sales representatives to produce the highest quality lists possible and which, in turn, led to much higher response rates.

“Too often marketers put all their energy into worrying about the creative for a piece, and neglect everything else,” Himsworth says. “When combined properly though, the creative, list, offer, strategy and process of a campaign can produce exceptional results.”

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Treating Prospects to a Dimensional Mailer Cuts through the Clutter

Dimensional Mail Reaches Executive Class

By Pamela Oldham

When Jessica Paindiris became marketing director for industry-leading Massey Knakal Realty Services, she found herself taking on a customer communications problem that wasn’t just strategic — but frustratingly systemic, too.

“We had more than 75 brokers among three offices in the New York City metro area, each using three or more vendors for direct mail printing and distribution, all doing their own thing. Nothing was consistent,” says Paindiris, who joined New York’s top building sales firm two years ago.

The bookkeeping nightmare was just as bad, according to Paindiris: “Our accounting department had to chase down back-up for hundreds of invoices.”

DIY Direct Mail

To increase efficiency, Paindiris turned to a solution whose popularity has rapidly spread among many corporate marketers: a Web-to-print program, essentially an online and automated prepress process. Aided by MSP, a direct mail marketing company in Freedom, Pa., she installed a program that allowed each broker to create his or her own Web-to-print direct mail pieces tailored to specific clients.

Each broker gets a customizable online template. The template can be changed according to corporate standards, guidelines and size of the piece. From there, brokers choose targets from either their own mailing list or from a preloaded database.

Efficient and Convenient

Once approved, the pieces are printed and in the mail within two business days — a far cry from the several days that it often took for traditional print programs to get rolling. “Previously, they spent hours and hours just labeling postcards,” recalls Paindiris. “Efficiency has definitely improved.”

Automated invoice and payment features in the program add to its convenience, says Christopher Wright, director of sales and marketing at MSP. “Time is money,” he says. “MK corporate personnel were spending dozens of hours chasing down invoices and receipts, and that cost has been eliminated because the process has been completely automated.”

Enterprise-wide Web-to-print solutions allow marketers flexibility while also remaining consistent with corporate branding and messaging, Wright explains. And, the savings can be significant, he says. “You’re printing on demand, printing as it’s needed. There’s no waste, no obsolescence, no hidden costs.”

Saving on Time, Money and Storage Space

The savings on design fees and other labor costs eliminated by the Web-to-print effort can be significant for a major company like Massey Knakal — whose brokers mail between 50,000 and 75,000 pieces a month. Wright and his clients are reluctant to provide specifics on the savings they’ve realized, wary of tipping competitors. However, Wright tries to sum it up by repeating an old adage:

“Time,” Wright says, “is money.”

Storage space is money too, another concern minimized by Web-to-print. In the past, experts note, companies that managed centralized direct mail and printing programs for multiple operating units — including franchises and individual sales representatives — commonly printed large numbers of “shell” materials. These materials sat in a warehouse waiting for future customization and distribution.

But the expected cost savings was quickly negated by the expense of rapid inventory obsolescence, program inflexibility and service issues. The long lead times required for even modest customization led users to abandon corporate and franchise policies and take their printing elsewhere — especially those in intensely competitive environments where speed is as valued as cash.

By: Paul Gillin

If you’re like many mid- to large-sized businesses today, you’re probably experimenting with online customer communities. But smart marketers realize that no single channel should be relied on to reach consumers. So we’ve decided to offer a few tips for those of you looking for fresh ways to mix your mail, digital and other media to promote an engaging marketing message.

Remember: In these new forums, community is content. By leveraging contributions from your customers and promoting interactive features on your Web site, you can revitalize direct mail content. Consider, then, these 10 ideas:

1. Make a direct-mail piece a membership card to your exclusive community – Mail recipients a unique code they can use to gain access to a members-only area with exclusive offers and information.

2. Surprise them with pertinent mail offerings — Despite what some think, Web-savvy customers do enjoy relevant mail offerings. Drive members from the computer to the mailbox by letting them provide their mailing addresses in exchange for special offers – coupons, product samples, etc. — made exclusively through the mail.

3. Get members to nominate their friends - Every page on your website should have an option for visitors to share it with a friend. Expand that with the option to key in a mailing address. Members of your community can nominate friends to receive a membership card by mail or kick off a members-only coupon.

4. Create a contest – Invite members to write a slogan, upload a photo or share a relevant video. Use direct mail to invite prospects to go online, submit their entries and see what others have contributed. Arouse their curiosity and let members provide the content.

5. Turn contest entries into direct mail – Have members of your online community vote on content, such as photos submitted by other members. Publish winning entries as a calendar and send it out via direct mail.

6. Create a greeting card promotion – People love to send greeting cards to their friends, so make it part of your ongoing campaign. Give members a palette of creative greetings with images and slogans that relate to your business. Enable them to personalize the greetings and specify a mailing address. You do the mailing.

7. Stage special online-only events – Drive direct-mail recipients to an interactive webcast or chat session with your CEO or a product-line visionary. Only visitors with the special tracking code on the mailer can participate. That makes the event special and gives you a way to track response.

8. Rock the vote – Customers like to learn what other customers are thinking. Launch a survey or poll and promote it to your mailing list. Recipients can vote online and register to see results. You can even distribute results as a mailer.

9. Tease them – Post a “Top Ten Tips” list and promote some of the items via direct mail. Drive recipients online to see the tips they missed. You can do the same with winning entries to a contest or even with advice submitted by your members.

10. Take to the airwaves – Start a series of audio or video podcast interviews with thought leaders in your field. Burn the first five recorded programs on CDs and mail them as promotions. Invite recipients to visit your website and register to subscribe to future programs

By looking to your growing online community as a source of material, you can unlock treasure troves of new content to feed your direct-mail campaigns.

Paul Gillin is an author, speaker and writer who advises businesses on online marketing. He is the author of The New Influencers: A Marketer’s Guide to Social Media and the newly-published Secrets of Social Media Marketing.

By Mindy Charski

You’ve probably seen QR (quick response) codes in magazines and on billboards. But did you know they could add interactivity to direct mail?

When a person snaps a picture of these two-dimensional bar codes — using a smartphone equipped with camera and reader software — the codes spring into action, perhaps redirecting the browser to a personalized landing page or showing a phone number or message.

“The rapid penetration of mobile phones in the U.S., increase in the speed of wireless data transfer and availability of free bar code reader applications have all made QR codes a viable option for marketing campaigns,” says Ramin Zamani, marketing director at software company MindFireInc in Irvine, Calif. “The key factor is how fast people will adopt the technology.”

One early adopter is online retailer Go Green Items in Tampa, Fla. The company mailed postcards, created by Tampa-based print marketing firm Direct Marketing Concierge,® to 1,000 prospects in April with a QR code that revealed a discount code and a link to its website. Within a week, Go Green Items received three orders from people who had scanned the bar code

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By Steve Cuno

Note to parents: Washing your kid’s mouth with soap doesn’t prevent cussing. I know this because when my son was small, he tested it. Upon seeing a repeat-offender friend’s mouth cleansed for the umpteenth time, he came home, applied soap to his own mouth and then tried to say “damn.” And succeeded.

Little did he know that he’d used the scientific method. And if potty-mouthed kids can use it, so can marketers who want to increase their effectiveness.

First, let’s explain the scientific method in “Real People-ese:” You start with a hunch (soaping a mouth prevents cussing); you do a predictive test (if that’s so, then I shouldn’t be able to swear after soaping my mouth); and you draw a conclusion from the results (I could still say “damn,” so the hunch was most likely wrong).

Consider, for instance, how I used this method to help a client choose between two covers for a romantic music CD. One cover was black with a red heart in the middle. The other featured a golden sunset. In intercept interviews, nearly everyone scoffed at the sunset cliché and expressed a strong preference for the sexier black cover.

I wasn’t convinced. As a direct marketer, I know that arguably trite elements like time-worn phrases, gaudy design elements and peel-off stickers can pack a good deal of selling power. For a more predictive test, I stacked the two versions side-by-side on a tray, told people that the CDs were identical and offered to let them take one free. I did not reveal that I was testing, and I didn’t ask for opinions. Each time someone chose a CD, I replaced it to keep the stacks equal. I also switched the position of the stacks in case people were biased toward one side or the other. The results were eye-opening. Though nearly everyone had expressed a preference for the black cover, when it came time to choose one, nearly everyone opted for the sunset. Cliché and all.

The more I resort to the scientific method, the more I’m surprised at what I learn. I must admit that, in the above-referenced example, both the client and I preferred — and were rooting for — the losing design. Other tests have equally shown that I am a fallible clairvoyant. I was certain that a free offer for an entertainment center remote control would outperform a free offer for a five-inch flashlight. But in a series of direct mail tests, the flashlight won three times over. In a direct mail test for a university fundraiser, I “knew” that a mission-centered appeal would outperform a member-benefits appeal. But when we tested and observed, there was no difference in response. Further testing revealed that response rose only when the school’s football team won a significant tournament. (Not an easy strategy to roll out, as fixing games isn’t one of my agency’s core capabilities.)

The facts aren’t always what you want them to be, which is why the scientific method is important. Careful testing, observing and tallying are the surest ways to protect against seeing what you hope to see at the expense of facts.

Sadly, not all marketers want facts. I know many who readily disqualify all inconvenient data. Still others exhibit remarkable creativity when it comes to making data turn out the way they want. One enterprising fellow split a test mailing 90-10 instead of 50-50 to ensure that the version he preferred resulted in a higher gross response. In his report, he hid the fact that the other version outperformed on a percentage basis.

Someone should have washed his mouth with soap.

Direct mail messages that focus on a few quality contacts can take social network connections to the next level.

By Steve Tingiris

Forget the sales funnel. This traditional marketing approach of getting your message in front of thousands of people to net a handful of customers isn’t working the way it used to.

Consumers today are inundated with marketing messages — and they’re not paying attention to most of them. How can they? It’s gotten so easy to communicate electronically that most can’t keep up with the number of daily e-mails, text messages, instant messages, friend requests, tweets and all the other updates they get.

So the key is to identify the few people who will have the greatest impact on your business and connect with them on a one-to-one basis. Problem is, most marketing communications are still generated by databases and, all too often, electronic messages get lost in the crowd or aren’t as personal as the social media channels to which consumers have become accustomed.

We’re changing that at Enthusem by putting a digital twist on classic greeting cards. With our technology, marketers can send a handcrafted greeting card from the Web with a personalized message and a link back to their online world. They can include a digital component like a URL or a pickup code, which recipients can type in online to view a custom video or read an extended note, among other things. Plus the cards arrive in translucent envelopes that catch the eye of the recipient more than an e-mail or e-card might.

We’ve used the approach to successfully market our own company. When Marc Fors, our co-founder, saw the potential for collaborating with a data storage site, he mailed the company’s CEO a card featuring a photo of the company’s lobby, a message suggesting a partnership and a link to more information online. We signed an agreement 30 days later. That was a $2 marketing campaign.

You can see why salespeople love this technology — they can connect with prospects, customers, supporters, friends or anyone else in a way that is personal, engaging and extremely memorable. Even simple business thank-you cards can link your best customers to online product literature — without spending the time to hand-write every note. It’s traditional style with almost infinite possibilities.

Whether you’re making the connections online with social networking or in person, if you can capture a postal address, you can use mail to see results. The secret is in identifying those few people with the power to have the greatest impact on your business, then communicating with them in unexpected ways. A custom-created greeting card with a personal note and a link to more information online is one of the best ways to do that today.

-Steve Tingiris is founder and chief executive officer of Enthusem.com.

A regional magazine uses direct mail to return former subscribers to the fold.

Interview by Chantal Tode

Not too long ago, regional publications were a success story in the magazine industry thanks to their ability to deliver targeted content to local audiences. The challenges of the past year, however, spared few, including many homegrown titles. Thirty-five-year-old St. Louis magazine, which saw its circulation decline 5 percent and also lost advertising sales, is among those that are valiantly fighting back. With a circulation of about 40,000 readers, the monthly for upscale professionals in metropolitan St. Louis has a plan in place for 2010 to elevate its circulation rate, and direct mail plays a big role. Circulation manager Dede Dierkes talks to Deliver® about why direct is a good method for re-signing subscribers.

DELIVER: How has your circulation strategy evolved?
DIERKES: This year, we will be relying more on direct mail in our efforts to boost our circulation and bring it back up to where it used to be. To accomplish this, we will be doing more frequent, smaller mailings and using our house list more to reach out to expired subscribers. We used to drop large acquisition mailings three times a year. The focus was primarily on people we had never contacted before, with approximately 75 percent of the names coming from rented lists while 25 percent were lapsed subscribers.

DELIVER: What’s the reason behind deciding to focus on reactivating lapsed subscribers over acquiring new ones?
DIERKES: “Expireds” brought in the best response rates over the past few mailings, responding at a rate of close to 3 percent compared to 1 percent, at the most, for everyone else. In our first new direct mail concept for 2010, the mailing list will skew more heavily toward names from our house list. We’ll also mail only to ZIP Code™locations that fit our target reader and are within the city’s borders or are nearby. As the year progresses, we’ll expand the reach to outlying areas.

And even though we will be using fewer rental names, we will be venturing out more to try out new and different lists instead of relying on the same old lists we’ve been using for years.

DELIVER: Why is direct mail a key part of the push to recapture this group?
DIERKES: It’s a good way to reach a large group of people and show them what they’ve been missing. We tend to lean away from telemarketing because we don’t want to bother readers at home in the evening to ask them to subscribe. With direct mail, recipients can open a piece at home on their time, see what they’re getting and make a decision to respond.

We will also be using direct mail to drive people online to subscribe. Our Web site currently offers the ability to subscribe online to the print publication, but there are a few kinks in the system. Once we work those out and can make it easier for people to subscribe online, we will begin testing to see how many direct mail recipients respond via the mail vs. how many choose to go online.

DELIVER: Why increase the frequency and decrease the size of the mailings?
DIERKES: As we work toward bringing our circulation back up, we want to get the most bang for our buck. With smaller mailings, not only will our balance sheet not take as big a hit, but we’ll be able to do more testing. Instead of throwing our money into a big mailing and crossing our fingers that we will get a strong response, we can see what’s working and what’s not throughout the year and make changes as we go along.

DELIVER: Do you have a favorite marketing campaign, from either your company or another?
DIERKES: I would have to say the one we did this past fall is a favorite because it had such a good response rate. We included a four-color buckslip [a small insert] in the envelope instead of the black-and-white insert used previously. The new insert was a 3-inch by 5-inch glossy sheet of paper printed with several magazine covers on one side and a list of some of the publication’s special features on the other. It was a very clean, crisp-looking piece that people really liked and were more apt to respond to. And because it was four-color, it really popped and got people’s attention. We spent more on it than on previous inserts, but with a higher response rate, the return on investment was there.

DELIVER: Is there a piece of direct mail you hold on to because you think it’s beautiful, awful or inspiring — or for some other reason?
DIERKES: I hang on to a piece from a men’s magazine because I think it is awful. The font used in the piece is very small, there are just two colors in the piece and the offer is very straightforward. There obviously wasn’t a lot of creative thought put into the piece. It has no pizzazz.

I expected more from the direct mail for this high-end magazine. The magazines themselves are great looking and provide a lot of information. The direct mail should be along the same lines and reflect the brand. This is something we aspire to do at St. Louis magazine — continue our branding efforts through the direct mail pieces.

With tax season approaching, Jackson Hewitt launched a new multichannel campaign that takes the pain out of filing a return and puts the fun back in “refund.”

By Pamela Oldham

Tax season can evoke plenty of sentiments. Excitement, though, is usually not one of them.

Unless you ask a Jackson Hewitt client.

While devising Jackson Hewitt’s marketing strategy for the 2010 tax season, marketers for the tax preparation company conducted a study to learn more about clients’ purchase motivations and their opinions about tax time. Among the feelings they found common to many clients? Enthusiastic anticipation.

“Many of us think about tax season as a time of stress and worry,” says Debra Dowd, Jackson Hewitt’s vice president of Marketing. “But when you actually talk to consumers and ask, ‘How do you feel about tax time?’ you hear, ‘I can’t wait’ and ‘I’m really looking forward to it,’” Dowd says. “It’s a surprisingly consistent response — but not one that’s typically publicized.”

Of course, Jackson Hewitt finds its own type of joy in tax time. The Parsippany, N.J.–based company is an industry leader, providing full-service federal and state income tax return preparation via its 6,300 franchised and company owned offices throughout the United States.

The enthusiasm expressed by clients arises from a basic truth: More than 70 percent of taxpayers — about 90 million people — receive tax refunds each year, according to the IRS. The average refund check is nearly $3,000. For taxpayers who have sacrificed all year long in an economy gone sour, a tax refund seems like a welcome reward for them and their families. Many of those surveyed said their refunds would be shared with relatives or to purchase something special.

“It was such a pervasive response that we thought we’d dial up the fact that tax time is something to look forward to,” Dowd says. “It’s a very positive message. For many people, a tax refund is probably one of the biggest checks they’ll get for the year. Especially given the economy, when people are feeling a bit down, [that refund] is a good piece of news.”

Dubbed “Big Check,” the national Jackson Hewitt campaign includes television, radio, print, online, out-of-home, direct mail and in-store components. While the firm’s closest rival touts its ability to answer tough tax questions, and other competitors address minimizing the pain of tax preparation, Jackson Hewitt focuses on the payoff — that big refund check and the promise it brings.

“We wanted to focus on the happy moments that could be shared when you have your refund check in your hand — going to a favorite restaurant, going shopping or taking the kids to a ball game,” explains Dowd.

Direct mail led the way for the campaign. Even before other media were put into play, Jackson Hewitt sent a series of mailers to previous clients in November, all containing offers prior to the start of the tax season.

“When you’re in the tax business, you engage with your clients less when it’s not tax time,” Dowd says. “So it’s very important to remind people that we’re here and ready to serve them again when it comes time to prepare their taxes. The November mailers helped reinforce our brand message and remind our prior clients why Jackson Hewitt continues to be a great choice for tax preparation.”

“Direct mail has always been an important channel for us, especially when it comes to reaching out to prior clients,” Dowd says. “It is highly trackable and measurable; it gives us the ability to understand in real time how we are performing against this part of our plan and whether we need to ‘dial things up’ or not, and it enables us to send timely and relevant messages to this very important audience.”

But the larger-than-life check featured prominently in the campaign’s direct mail and advertising isn’t the only thing that’s big about Jackson Hewitt’s marketing.

“The 2010 tax season marks the start of our exclusive relationship with Walmart, serving as its official in-store tax preparation service,” Dowd says. Jackson Hewitt’s presence in approximately 1,800 of the chain’s stores this season also has been promoted through co-branded television, radio and direct mail, as well as a co-branded tax center accessed through the retailer’s Web site.

Additionally, customer acquisition–focused direct mail targets prospective clients who may have come into the store last year to work with a different tax preparation service. Jackson Hewitt also uses direct mail specifically targeted to the store’s employees — a universe of more than 1.4 million.

“We are offering Walmart associates a special 25-percent discount for in-store tax preparation, or 30 percent off if they choose to file online with Jackson Hewitt Online,” Dowd says, adding that by mid-January Jackson Hewitt was already starting to see store employee traffic build.

Meanwhile, the tax preparer is undertaking other efforts to raise its brand profile. In January, the company launched Jackson Hewitt Online, a Web-based tax preparation solution for people who choose to prepare and file their own tax returns. In announcing the new offering, Jackson Hewitt CEO Harry Buckley positioned the product as part of the company’s commitment to providing all clients with options and services to make filing taxes as “accurate, easy and convenient as possible.” According to Dowd, Jackson Hewitt Online addresses the growing market demand for this channel, especially among first-time tax filers and clients migrating from traditional tax preparation services.

The past year also marked other marketing moves: The redesign of the company’s national Web site, jacksonhewitt.com; the introduction of “TaxTalk,” a company blog; and an expansion of its social networking presence into some of the most popular social media sites. The company’s high-touch, multichannel strategy also helps set Jackson Hewitt — ranked No. 2 in its industry category — apart from competitors.

Results from Jackson Hewitt’s 2010 tax season campaign won’t be tallied until after April 15, but the company looks forward to driving traffic into their stores with taxpayers seeking assistance in claiming many new tax rules, including credits for buying an energy efficient appliance or buying a new home. “New and changed tax rules can impact our industry in a very positive way,” says Dowd.

No doubt that will raise the enthusiasm level of Jackson Hewitt clients yet another notch.

Campaign synopsis
• Company: Jackson Hewitt
• Product: Tax preparation services
• Channels: Television, radio, print, direct mail, online, out-of home, in-store
• Goal: Raise brand profile and increase share of market
• Tactics: In addition to the campaign, the company made a deal with a major retailer to be the official instore preparer in 1,800 stores
• Response rate: Initial response to the campaign has been strong, but the company won’t know the full impact until tax season is over.

Tax Time By the Numbers

Whether you have a tax service like Jackson Hewitt prepare your return or tough out your 1040 on your own, there are plenty of numbers to crunch. Here are a few other numbers about tax time:

The IRS expects 238 million returns to be filed during calendar year 2010. That’s down from the 2009 level of 240.4 million.

The IRS spent an average of 50 cents to collect each $100 of tax revenue in the 2009 fiscal year.

Adjusted gross incomes declined 3.7% to $8.2 trillion in 2008. Taxable income also decreased, dropping 5.1% to $5.6 trillion.

Total income tax for 2008 decreased 6.2% to $1 trillion.

The first income tax was instituted in 1862 to help pay Civil War expenses.

In 1918, the tax was revised to help raise sums for World War I. It imposed a progressive income-tax rate structure of up to 77%.

Source: IRS

Messaging on the outside of shipments offers new approach for marketers

By Sandra Beckwith

While many marketers tuck bounceback ads into product packages sent to customers, a growing number are positioning them on the outside of the box instead — and they’re putting them on packages mailed by others.

Zadspace Inc., a company pioneering the medium, works with marketers to identify which individual customers who have made purchases from its distribution partners — catalog retailers, infomercial product distributors and e-tailers — are best suited to the advertiser’s demographics. Ads for products are affixed next to shipping labels on appropriate packages at the order fulfillment center.

Response rates are ranging from 1 percent to 14 percent, and costs are similar to conventional direct mail pieces, says Todd Outten, Zadspace president and co-founder.

“It’s a unique touch point because it reaches consumers when they’re in a receptive state of mind,” he adds. “They’re expecting the package, making them likely to look at and consider the external message since it’s with a piece from a brand they already trust.”

Treating prospects to a dimensional mailer that cut through the clutter was the trick for Manhattan Associates.

By Mindy Charski

When 2,210 executives at multichannel retailers received a plastic pumpkin from Manhattan Associates in the mail last year, they found the candy inside it to be fresher than the enclosed personalized greeting, which read “Happy Halloween.” It was, after all, December.

“We wanted to spark curiosity and make recipients wonder why they got this pumpkin so late after Halloween and what it was all about,” says Malinda Wilkinson, senior marketing manager at the Atlanta-based supply chain solutions company.

Recipients could find the first clues in the eight-page booklet dangling from the pumpkin, which was chosen to represent products with short life cycles. The copy read, “Oops! (Name), getting purchases to your customers too late can be costly and scary,” and went on to explain that the company’s Zero Disappointment Retail solutions can help clients “avoid stock outs and late deliveries.”

“It has a sense of humor,” says chief marketing officer Terrie O’Hanlon of the effort that cost $12 per piece. “We know losing customers is serious stuff, but we didn’t want to have a fear, uncertainty and doubt message around that, especially in this economy.”

The mailer was the second in a three-phase dimensional campaign promoting Zero Disappointment Retail, which enables retailers to provide a consistent brand experience across sales channels. The other two pieces spotlighted different inventory misfires by featuring a fancy gift box with an “out of stock” notice inside and, subsequently, a T-shirt that could only fit a baby.

“Mailing to the same people three times is about awareness,” O’Hanlon says. “Manhattan has a history of being known for its warehouse management solutions, so part of the goal of this was to make the right people aware that we do other things.”

Each mailer directed recipients to a personalized URL to download a specific offer, like the Halloween piece’s “definitive guide” to Zero Disappointment Retail. Manhattan Associates was happy to see a jump in the number of top-level decision makers who responded to the second mailing as compared to the first. “These solutions are at a price point that requires executive buy-in,” O’Hanlon says.

In fact, rather than generating a ton of leads, Manhattan Associates hopes the effort nets 10 “opportunities,” or vetted prospects that have a defined project, budget and time frame to purchase. But from a brand perspective — even though results from the third mailing were not available at press time — O’Hanlon has already deemed the effort a success. “It’s about connections and building a personality into how you interact with your customers,” she says. “This campaign does just that.”

The Essentials
Company: Manhattan Associates (Atlanta, Ga.).
Target Audience: 2,210 executives at multichannel retailers in the United States and Canada with more than $250 million in revenue.
Goals: Attract 10 vetted prospects with a defined project, budget and time frame to purchase.
DM Vehicle: Candy-filled plastic pumpkin with personalized messaging (the second in a three-phase dimensional campaign).
Response: 1.4 percent of recipients advanced to a personalized URL, and response from top-level decision makers jumped.

Don’t just tell consumers about your product — let them sample it for themselves.

By Marc McCrery

Sure, your marketing team can come up with clever slogans to help sell products. But is that really going to grab consumers’ attention, especially when they’re bombarded daily with branding messages across all sorts of mediums? Your product needs to stand out — and giving consumers a free sample they can try for themselves is hard to ignore.

Sampling drives purchase consideration. In fact, 61 percent say sampling a product is the most effective way to try a brand, and 81 percent will try a product after they receive a free sample, according to a recent survey conducted by Opinion Research Corp. for the United States Postal Service.®

The survey also shows that consumers actively seek samples, with almost half of respondents requesting one within the past year. And many are doing so through innovative new channels, such as social networks, which many big-name global brands are using to promote product samples.

Marketers also are capitalizing on TV commercials to drive traffic to Web sites where consumers can ask for a sample to be sent to their home — the place most of them want to try products, according to the Opinion Research survey. That’s because receiving samples at home lets consumers experience a product in a place that is comfortable and convenient for them.

But while these new channels are great ways for marketers to promote trial offerings to many, the key to any successful sampling program is focusing on the consumers who are most likely to give your product a shot.

Mail is the only medium that really enables you to target consumers — and gives you access to their homes. Plus, mail is highly measurable, meaning you can better track whether your sample actually converted into a sale.

As marketers continue to look for new and creative opportunities to get samples to consumers to increase trial, the Postal Service™ is actively exploring new ways to help them get samples to customers — from creating a co-op box of product samples to exploring ways to leverage Post Office™ locations. To learn more about USPS® sampling options, or to share how you are creatively using sampling as part of your marketing mix, e-mail us at samples@usps.gov.

Marc McCrery is the executive director leading the sampling initiative at the United States Postal Service.®

By Pamela Oldham

A marketer always wants to say that his brand’s product is better than a competitor’s — but what does a CMO do when his rival’s product is so bad that it sours consumers on that product category altogether?

PureSpectrum, a Georgia lighting company, faced just such a dilemma recently as it sought to convince customers to try its new 20-watt dimmable compact fluorescent lamp (CFL). “There are other dimmable CFLs out on the market today, but they’ve left consumers feeling cheated,” says Nick Peragine, one of the company’s product sales managers. “They don’t work very well and they’re very expensive.”

Despite what Peragine says is the superiority of the PureSpectrum bulbs, bad experiences with dimmable bulbs from other brands had left many prospective customers skeptical about whether any dimmable compact fluorescent lamp was worth the money.

Still, given increasing concerns over energy conservation, PureSpectrum believes there could be high demand for the energy-efficient lamps — if the manufacturer could prove they worked well before customers made purchases. So that’s just what PureSpectrum set out to do.

Enlightening prospects

The company determined that the most effective way to achieve acceptance of its product was to mail samples to a key target audience — more than 900 rural electrical co-ops across the United States. “In our industry sampling is crucial, but it’s everything in our case because we’re a young company with a new slant on a technology that hasn’t necessarily proven itself in the past,” says Peragine. “We came to the decision to use direct mail primarily because it was the easiest way to introduce our products to a large number of potential constituents over a broad area.”

The mailing went out in late 2009 and, in addition to the sample, included a product endorsement letter from a nationwide distributor of products and services to energy cooperatives. The rural electrical co-ops represent millions of commercial and residential energy customers across a large number of U.S. counties. Co-ops typically stress affordability and encourage wise use of energy. Ownership is generally held by local customers of the utility.

“Co-ops are always trying to find ways to help their customers save energy,” says Peragine. “We wanted to get our CFLs into their hands, with the potential that they’ll do the right thing as a rural electrical utility and get them into the hands of their customers. One of the hopes is that if a consumer gets our CFL from their utility company, there’s going to be brand recognition and demand for our product, and that will build interest from the retail and distribution channels.”

Results of the campaign are still pending, but Peragine says that the mailer has generated an influx of purchase orders, product sales and requests for quotes. Over the coming weeks and months, the company’s sales team will continue follow-up efforts, including outbound calls and other activities.

And although Peragine anticipates the mailer will ultimately achieve a response rate of 20 percent, he says he isn’t focused on traditional direct mail measurements to gauge success: “We wanted to get actual samples of our product in their hands, for them to test and say, ‘Wow, this really does work.’”

Giving an established brand a new look is not to be taken lightly. Fortunately, mail can be a great way to make the transition a bit smoother.

By Bruce Britt

As the new century dawned, the Los Angeles County Metropolitan Transportation Authority was beset by image problems, not the least of which was its name. “It’s six long words that ends in ‘authority,’” says Michael Lejeune, the county agency’s creative director. “That’s about as cold, unfriendly and bureaucratic as you can get.” The organization’s old nickname, MTA, didn’t inspire much excitement either, he says.

A worse problem, however, was declining ridership. Though more than 1 million Angelenos board county buses every weekday (with another 300,000- plus taking the Metro Rail lines), only 10 percent of area commuters were taking public transportation. “We need people to choose public transportation, because getting more people out of their single driver habit is key to improving,” Lejeune says.

Sensing a connection between the drab image and limited ridership, officials at the transportation agency launched a full-on, multichannel rebranding campaign. This included a new emphasis on the popular name for the company, “Metro.” “All over the world, ‘metro’ means movement,” Lejeune says. “Think of the Paris Metro or the Washington Metro. The word is shorter, friendlier and feels right.” In addition, the agency repainted its buses and launched ads across multiple channels. A redesign of the old logo, which already incorporated the “Metro” term, completed the rebrand.

And to get out lengthier messages about the rebranding campaign, Metro turned to mail, sending out thousands of brochures and calendars to riders and employees to heighten awareness of its latest moves and, as Lejeune says, “to entice residents to try it.”

Though mail is traditionally associated with direct marketing, the Metro campaign is one of many recent efforts that illustrate how major marketers also are embracing mail to help them rebrand their companies. Since a rebrand can be potentially confusing for consumers and even employees, marketers ranging from big-box stores to restaurant chains to municipal agencies are relying on mail marketing for its ability to convey substantive messages about a rebrand quickly and easily.

Rerouting perceptions

In the case of Metro, Lejeune and his team sent out more than 160,000 brochures to residents within a half-mile of its Orange Line route. The four-color brochures contained information about the new Orange Line route and, in an appeal to eco-conscious Angelenos, about Metro’s new high-tech/low-emissions buses.

The agency also coordinated its mailings with other ad channels.
For instance, Metro last year began mailing calendars that promoted a campaign dubbed “Opposites,” originally launched in outdoor media. Featuring a stark black-and-white design scheme, the outdoor campaign showcases transportation problems and solutions. For example, one ad features a silhouette of a gas pump with the word “problem,” while an opposing image of the Metro logo bears the word “solution.”

Metro mailed about 4,000 “Opposites” calendars to 600 of its Employee Transportation Coordinators — volunteers at private companies who educate employees about transit options, promote ridesharing and work with Metro to get the latest on its programs and services.

Metro also created 10-second drive spots for local radio, ran twice-monthly insertions in more than 60 smaller papers around L.A. County and posted online banner ads on its site and high-traffic local sites.

So far, the campaign is working. Average weekday ridership on Metro Rail had jumped more than 40 percent by late 2008, and bus ridership on various Metro color-coded lines increased around 10 percent. Meanwhile, Lejeune and the Metro creative department have even captured prestigious awards for the rebrand. “The recognition has been very exciting for us,” Lejeune says. “It’s a validation that we’re doing good work.”

Of course, Metro isn’t the only organization or business benefiting from the integration of mail into its rebrand.

High steaks

Take Cincinnati restaurateur Jeff Ruby. Fueled by his own larger-than-life image, Ruby built a culinary empire on what is known as “The Jeff Ruby Experience” — a combination of award-winning steakhouse cuisine, VIP service and upscale ambience. It’s a formula that initially came together in his flagship venue, Jeff Ruby’s Precinct, which has attracted world- renowned entertainers, pro athletes and other luminaries for decades.

Problem was, as recently as a few years ago, many Midwestern food lovers were unaware that the five-star Ruby dining experience could also be enjoyed at more than just his namesake locations, including The Waterfront (a floating steak and lobster house with a Miami– South Beach vibe and raw bar) and Carlo & Johnny (situated in an old Cincinnati casino and Mafia hangout). Each restaurant has its own unique aesthetic, menu and patrons, but the company wanted to expand its brand equity to encompass the entire family of eateries.

“The challenge was coming up with a unifying theme while continuing to promote these restaurants individually so that they’re able to live on their own,” says Ben Stallard, who worked with the Ruby organization to guide the rebrand. “We asked ourselves whether Jeff Ruby Culinary Entertainment would be better served operating as a branded house or a house of brands.”

After some careful consideration, Stallard pitched a simple idea: bolster the umbrella brand under which all Ruby restaurants would fall. Thus, an upscale steakhouse like Carlo & Johnny would become Jeff Ruby’s Carlo & Johnny. “There was this huge piece of equity that the company owned in ‘The Jeff Ruby Experience,’ but people on the street would talk about it in pieces,” Stallard says. “What we did was put it all together, articulating that Ruby brings his dining experience to every property he owns. To communicate that message, we agreed on a hybrid solution: It would be best if Jeff Ruby’s became a branded house of brands.”

They also determined that direct mail was one of the ideal channels to use to get out word about the rebrand. As part of the seven-month initiative, Jeff Ruby Culinary Entertainment developed a list of people who had recently moved to the Cincinnati area and sent them cards hand signed by the general manager of a particular Ruby’s restaurant.

The cards were die cut into oval shapes featuring Jeff Ruby’s new logo on the front. Inside, recipients were treated to brilliant, four-color romance shots and food photographs. “The messaging was ‘Welcome to the neighborhood, come in, ask for me (the general manager) and let me introduce you to the Jeff Ruby Experience’,” Stallard says. “It proved very successful, with people new to the area appreciating the outreach.”

Further leveraging direct mail, Ruby pored over his private data, including his own mailing list, customer comment cards and promotions redemptions. The restaurateur then partnered with a national luxury-brands direct marketer that mails packets of gift certificates to patrons. Ruby’s specified that it wanted to focus on recipients who had not recently visited a Ruby’s restaurant. The standard postcardsized gift certificates, included in a packet of similar offers from other upscale brands, invited customers to visit a specific Jeff Ruby’s restaurant to take advantage of the special offer.

Though Stallard declined to specify just how many direct mailers were sent out (he would only say that they mailed “thousands” of cards and invitations), he notes that the combination of Ruby’s private customer data, the mailing list of recent Cincinnati residents and direct helped Jeff Ruby focus his marketing outreach plan. “Instead of using only mass media like TV and radio to reach our target group, we identified direct as one of the most effective ways to reach them,” Stallard says. “We were able to develop messaging much more specific to the wants, needs and mindsets of the people who drive our business. Direct is a tool that savvy organizations can use to be much more selective, focused and efficient.”

During a time when many U.S. consumers are cutting back due to the economy, Stallard says the Jeff Ruby rebrand has helped the chain weather the downturn. In late 2008, Ruby launched Bootsy’s, a Mediterranean fusion tapas restaurant operated in Cincinnati in partnership with the iconic R&B/funk entertainer Bootsy Collins. Ruby already operates two steakhouses in bordering Kentucky and Indiana, and now there’s talk of expanding beyond the region into St. Louis.

“The Jeff Ruby brand has a comprehensive base to work from when it expands,” Stallard says. “People won’t have to wonder each time ‘What does this place stand for?’ If it’s a Jeff Ruby restaurant, they’ll know what it stands for.”

When the Logo Has to Go

When companies rebrand, lots of forethought goes into overhauling the corporate coat of arms. Here, the brains behind the makeovers of the Metro and Jeff Ruby’s logos riff on their work.

Old logo: “Our old logo did not hold up well in certain necessary reproduction sizes. Also, it was too similar to another metropolitan transit authority’s logo, which was copyrighted, so change was needed.”

New logo: “This bold letterform is crafted in two parts, which our lead designer likened to two different roads that meet in the middle. The word ‘Metro’ is much larger, bolder and more easily read in all sizes. Also, the logo appears only in black and white. This is because we wanted to convey a strong, reliable, consistent presence through our logo.”
— Michael Lejeune, Creative Director, Metro (Los Angeles)

Old logo: “Precinct, Waterfront and Carlo & Johnny didn’t have the Jeff Ruby name attached, which was significant because ‘The Jeff Ruby Experience’ carries such positive equity. They were missing an opportunity by not obviously extending the identity across the entire platform.”

New logo: “We maintained each restaurant’s name and recognizable typographical look and feel by pulling the evolved font treatment into the oval shield. This associates each property with ‘The Jeff Ruby Experience,’ and gives each restaurant the flexibility to maintain those positive equities they’ve built on their own over time.”
— Ben Stallard, Independent consultant for Jeff Ruby Culinary Entertainment

Oversized windows entice recipients to find out what’s inside

Prospecting

Back in vogue are oversized-window envelopes that give recipients enough of a peek at the contents to convince them to open it.

The Wilderness Society — a Washington, D.C.–based nonprofit — adopted the larger windows for its bimonthly donor recruitment package, which it mails 2 to 3 million of annually. It now places the traditional single envelope used for the prospecting piece inside another envelope with an oversized window. And donors have taken notice.

When the double-envelope approach was tested against the single envelope, the oversized-window piece produced a 35-percent higher response rate, according to Robin Hickman, the group’s director of membership services. She adds that a subsequent test also generated a higher response rate, proving that doubling your efforts really can pay off. — Paula Andruss

We reveal four marketing trends likely to get hotter in 2010 – and show you how they can work for brands of any size.

By Anne Stuart

With the direct marketing industry in the grip of a series of upheavals, from the digital revolution to the economic meltdown, figuring out what’s coming next is becoming progressively more difficult. Creating effective strategies based on these expectations is the toughest part of all.

And so, faced with one new challenge after another — from increasing costs for production and materials to rising environmental concerns among consumers — marketers have intensified their push to get ahead of the industry curve. This has led to a massive scramble to determine where the most significant industry trends for next year will emerge.

To help, Deliver® sat down with experts from around the country to attempt to divine what’s in store for direct in 2010. While a number of potential trends were discussed, there were four key areas — targeting, measurement, channel integration and prospecting among baby boomers — that kept coming up as likely hot spots for growth and innovation.

As a result, we decided to take a closer look at these four fields and what possibilities they hold for marketers in the coming year.

1. Targeting

If there’s a one-word formula for marketing success next year, it’s “precision,” industry leaders say. Traditionally, of course, the trend has been toward amassing as much information as possible about prospect and customer groups, then bombarding them with offers. But that approach is no longer viable.

According to a recent Winterberry Group report, the organizations struggling hardest are those that have depended most heavily on “batch blast”–style mailings — that is, using the mail as a saturation tool with little or no regard for rich personalization or the particular needs of the individual recipient.

Liz Miller, CMO Council vice president of programs and operations, sums up the trend: “We’re moving away from saying, ‘I want to connect with women who are 34 to 54’ to ‘I want to connect with that particular woman.’”

Such customized approaches are already possible, but to date, have typically included only recipients’ names and, in some cases, their locations. But, Miller says, continuing advancements in database management and variable data printing (VDP) have industry experts predicting more robust personalization techniques in 2010.

Backroads, an active- and adventure-travel company, is already learning the value of tightly focused personalization, especially for generating repeat business. The organization uses automated marketing engine technology from Nimblefish to mail thousands of postcards to past customers that contain not only personalized messages but also photos of regions recipients have traveled to in the past. “The message might say, ‘Barbara, remember Yellowstone in May 2002? Have another memorable trip — and here are three options,’” says Massimo Prioreschi, vice president of sales and marketing for the Berkeley, Calif., company.

Miller says these kinds of highly tailored mail pieces offer a good glimpse of the direction that targeting will continue to take in 2010. “That’s going beyond just putting one person’s name on a piece of paper,” she adds. “It’s saying, ‘We want to give you everything that’s relevant to you right now.’”

2. Measurement/Analysis

While the need to tally ROI has always been essential to marketers, they are more pressed to prove that their campaigns are impacting consumers and generating revenue.

Experts predict that, as measurement tools become more precise, how brands measure the return on their investment is likely to become more complicated. They will have to pay attention to a broader range of data, and companies will have to work even harder to make sure that other parts of the organization operate in conjunction with the marketing department.

The CMO Council’s Miller recommends organizations extend their ROI measurement to the entire marketing supply chain. “Don’t focus on the return at the expense of managing investment costs,” she says. “Map, track, measure and put a dollar amount on everything you do.”

She adds that marketers also will have to improve customer experience, mostly by learning to better mine data. Businesses like Harrah’s Entertainment — owners of 54 casino and hotel properties worldwide — know the value of the detailed data their programs generate. The company’s mail-driven loyalty program, for instance, has allowed its marketers to collect and analyze data on how often program participants visit their properties, how much members contribute to overall gaming revenue and what games of chance they prefer, among other things.

In-depth analysis of members’ behavior lets Harrah’s construct more effective messages, says David Norton, senior vice president and CMO for Harrah’s. “If we know a player has been to past slot tournaments, we’ll make sure he or she gets invited to the next one,” he adds. “If they’ve never come to a mid-week event, we exclude them from mailings about mid-week events because, obviously, they’re not going to respond.”

3. Integration

In 2010, improved integration of channels, such as e-mail, direct mail, billboards and TV, will become more of a focal point for even the most reluctant marketers. “That’s always been a goal, but the economy has made it imperative,” CMO Council’s Miller says.

And even though the past two years brought plenty of dire speculation about — and even premature eulogies for — the future of print marketing, the people who keep an eye on these things insist that traditional channels like direct mail will continue to earn their place at the marketing table in 2010.

“The favorite thing to say in 2008 was that, in 2009, print would be dead because everybody was going to e-mail,” Miller recalls. “That didn’t happen. Actually, both modes of communication took a hit during the past year.”

For that reason, most marketers have found that online channels demonstrate greater value as a complement to direct mail applications, reinforcing the value of integrated programs, according to the Winterberry Group.

Backroads’ Prioreschi says that postcard mailers his company sends also drive recipients to a personalized Web site with several highly targeted offers. “If someone went to Yellowstone, Alaska and Glacier National Park, we know there’s a definite pattern there indicating he or she is a mountain wilderness person,” he adds. Thus, the personalized site might include offers for upcoming trips to the Canadian Rockies or Himalayas, complete with slideshows and videos.

Prioreschi says integration is working well. During one campaign, sales were 50 percent higher among people who received a postcard and clicked through to a personalized site than those who just visited the site on their own.

4. Prospecting

Since World War II, the 18 to 25 age range has been the sweet spot of American marketing. “There was a good reason for that,” says Dr. Ken Dychtwald, founder and CEO of Age Wave, a San Francisco research and consulting firm that specializes in helping companies market to older customers. “Young people historically represented an area of growth because of their willingness to try new things. They were still forming their brand preferences. The idea was that if you captured their hearts at that stage, you had them for life.”

And, of course, the postwar baby boom filled the sweet spot with tens of millions of potential young targets for marketers. Although the baby boomers have since aged, marketing experts say that, in many ways, they still represent a marketing sweet spot for industry innovators. Consequently, many in the industry are predicting a renewed focus on baby boomers in the coming year.

“People should be swooning over the baby boomers as they move out of youth and into middle age,” Dychtwald says. “This is an age group that has traditionally been sidelined, but we’re going to see growth in sectors catering to them.

“Reinvention is normal for this generation,” Dychtwald continues.
“They change careers many more times than their moms and dads did.
They’re willing to try new things. So if you think you can rest on your laurels — if you think you’ve got them for life — you’re wrong. Today, everybody at every stage of life is open to marketing.”

In courting boomers, he says, marketers also are reacting to another growing trend in marketing: the end of brand loyalty and the return to brand experimentation. People are more willing to try new brands than ever — and those over 50 years old are particularly open to these new messages, Dychtwald says. “They’re more likely than any other group to read and respond to catalogs and direct mail pieces,” he adds, citing research from the Direct Marketing Association. “They enjoy reading a good catalog and leafing through their mail looking for deals. Good pitches attract their attention. It’s a mistake not to take direct marketing seriously for mature populations — and the time to start is right now.”

Of course, the same could also be said about any of the other trends marketers are expecting to get bigger in 2010.

The Xerox 1:1 Lab shows how highly personalized marketing messages are leaving imprints on consumers.

By Chantal Tode

Sure, plenty of direct marketers and print ad specialists will talk a good game about how personalization and other newer techniques can lift your bottom line.
But at Xerox, the experts have developed a mail-marketing program — known as the “1:1 Lab” — that’s designed to help them back up the boasts.

“We’ve told the story a lot about how response rates and return on investment improve with the use of full-color printing and relevant data,” says Shelley Sweeney, vice president and general manager of the service bureau and direct marketing sector for Xerox’s graphics communications business. “But we really needed to prove it to people in a way that gives a true A/B comparison.”

Most high-level corporate marketers understand that personalization works. However, many brands fail to take advantage of the power of mail personalization because they don’t or can’t gather the consumer information critical to such precise targeting, Sweeney says. “Customer data is by far the most important thing to a successful direct mail campaign, which is what we are trying to prove in the lab,” she adds. “Most marketers have the data, but it might be in three or four different places.”

Without a certain depth of information about customers, such as when they last made purchases, marketers will find it impossible to create truly relevant messages. In fact, Sweeney says, Xerox regularly turns away candidates for the 1:1 Lab because the marketing department can’t compile customer data from the disparate departments.

Despite its name, the 1:1 Lab isn’t a physical place, although it was indeed born in a high-tech Xerox printing facility in Canada some years ago. Since expanding beyond the Canadian marketplace, the effort has become a “virtual” program in which Xerox and its partners around the globe blend their expertise with the company’s latest technology to underscore how personalization increases a message’s relevance to mail recipients.

Under the program, Xerox fits select clients’ existing mail campaigns with a variety of variable data printing (VDP) solutions. The marketing offer and creative are largely the same as the original mailer, with the biggest difference being the increased personalization of the 1:1 version. The Xerox Graphic Communications customer and direct marketing provider then print and mail out the revamped pieces, at no cost to the client, to measure how well the new mailers do as compared to the less-personalized versions. The hope at Xerox, of course, is that successful tests of its mailers will encourage client marketers to use a customized direct mail approach (and Xerox’s expertise) in full-blown direct mail campaigns.

Xerox completes about 10 tests a year in the 1:1 Lab, including several with well-known national brands. Typically, Xerox picks test candidates with robust customer data that are willing to publish any results. Once it chooses a candidate, Xerox teams up with that marketer’s production partner and any other strategic partners involved with the campaign.

Getting results

So far, many of Xerox’s clients are citing increased response to the personalized mailers. For instance, one recent test involved a 529 college savings fund. Dissatisfied with contribution levels, the fund administrators worked with the 1:1 Lab to revise a critical direct mail piece. The new version included graphics that projected how much money the targeted fund participant could save up by the time his or her child was ready for college. Additional graphs showed how greater contributions could boost the growth of the target’s account. Recipients of the personalized mailer upped their contributions levels at a higher rate than those receiving the traditional letter with no graphs, according to Sweeney.

“It really is a way, with no effort on the part of the end client, to be able to prove how successful direct marketing can be when it is not just spray and pray,” Sweeney says.

Content is king

Of course, there are many other marketers who do collect a wealth of vital data, and theirs are the brands that benefit most from the Lab. Consider, for instance, Ford Motor Co. The carmaker was using basic personalization — such as customers’ first names and the vehicles that they owned — in a recent direct mail campaign to promote extended service contracts. However, when response rates topped out at about 2.5 percent, the company looked for other ways to maximize ROI on the mailers. “We were doing a mediocre job of giving customers a reason to respond,” admits Mark Bardusch, Ford’s national sales and marketing manager of extended service business.

Ford’s production provider for the campaign, Budco, recommended the 1:1 Lab.
As a first step to reworking the mailer, Bardusch and Budco marketers pulled together an abundance of customer data from various departments, including vehicle type, length of ownership, address, age, income and gender.

“By combining the different sets of data and looking really hard at how we could connect the data with the messaging, we were able to build messages that speak to the reasons why having an extended service contract is important to different customers,” says Jeff Sierra, vice president of marketing and product development for Budco. “For example, a woman with a family might receive a mailer with an image of a family and the car that she owns.”

For the 1:1 Lab test, Ford mailed more than 20,000 pieces to owners of Ford F-150 trucks whose factory warranties were near expiration. The mailer was done in two formats: a black-and-white letter with the Ford logo in color, and a full-color self-mailer. Each format then had two versions: one with basic personalization such as the recipient’s first name (such as Ford had been sending all along) and the other with more personalized messaging and greater VDP content.

The test ran from November 2008 to February 2009, as the U.S. car industry teetered on the brink of collapse and as automakers testified before Congress in an attempt to garner government aid. Despite these events, the personalized self-mailer with a wide variety of VDP content still achieved a 5.7-percent increase in response rates and a 35.7-percent increase in sales penetration as compared to the original mailer with much less personalization. “With mail, they can comfortably investigate the service contract that best fits their needs,” Bardusch says.

Based on the success of the test, Ford began this past September rolling out the VDP strategy across its entire direct mail program for extended service contracts. This will eventually result in more than 2 million pieces of relevant mail annually, Bardusch says. And the company will continue to test various formats for VDP content, including letters and self-mailers. “We always felt that if we learned more about customers and the customers could have a better understanding of us, we would do more business together,” Bardusch says. He adds that by personalizing each offer, Ford also was better able to communicate its product selection.

Xerox’s Sweeney says that the successes of campaigns such as Ford’s only do more to back up the contention by those at the 1:1 Lab that rich VDP efforts can translate into deeper customer relationships. “When a company starts looking at customer data from an overall point of view, it is able to start creating more relevant messaging and drive results from its direct mail,” she says.

Perception Isn’t Reality

Variable data printing (VDP) solutions like those offered through the Xerox 1:1 Lab go a long way toward increasing the relevance of a product or service to consumers — but marketers’ perception of the relevance of their messages may be a far cry from how consumers really view them.

How to shrink this gap?

“Remember that relevance is in the eye of the beholder,” says an independent study titled “Marketers: Stop the Abuse! Adopt Preference Management,” Forrester Research Inc., July 2009.

The study reports, “It’s baffling that 80 percent of marketers can claim that customer preference is a key factor in determining which message is sent to customers when only a handful even ask how often customers would like to hear from them.”

Findings in the report show:

• Only 33 percent capture customers’ preferred method of message delivery.
• A similar number (29 percent) capture the type of content that customers want to receive.
• Only 12 percent capture customers’ preferred frequency for receiving marketing e-mails.
• 8 percent capture preference for receiving direct mail and telemarketing calls.
• 30 percent of marketers who capture at least one type of preference data take no action based on that preference.

Clearly, it’s time more marketers stopped guessing at what their customers are thinking and started actually asking.

A Nonprofit Cancer Center is Attracting Support With a Loyalty Program That Recognizes Not Only Large Gifts, But Continuous Giving – Regardless Of Amount.

By Natalie Engler

When money is tight, even the worthiest causes feel the pinch. But The University of Texas M. D. Anderson Cancer Center has found a way to boost donations even as other charities are seeing declines. M. D. Anderson has created a multilevel loyalty program that rewards members not only by their gift size, but by their longevity as a donor regardless of amount. And it’s proving to be the institution’s single largest source of unrestricted money.

A close-knit circle

To most people, loyalty marketing means frequent flyer miles or credit card incentives. But M. D. Anderson’s donor loyalty club relies on a more subtle and personalized approach to cultivating relationships with long-term members. Consequently, the donor loyalty club is winning over a growing number of members.

The club offers an assortment of membership tiers — from its Century Club to its President’s Associate Gold Level — which are defined by donors’ cumulative gift sizes over a 12-month period. Meanwhile, M. D. Anderson also offers its “Partner’s Circle,” which is open to members who’ve given to the institution consistently for five years or longer.

The Partner’s Circle sprang from the observation that people who gave a little bit of money continuously throughout their lifetime often ended up bequeathing the institution significant donations from their estates, says Cindy Lappetito, vice president and general manager at loyalty-marketing company Epsilon, which created M. D. Anderson’s direct marketing campaign and donor loyalty programs. “The Partner’s Circle gift program was a way to recognize those folks and reward them,” she explains.

Giving thanks

But the Partner’s Circle isn’t M. D. Anderson’s only expression of gratitude. Annual stewardship letters are mailed to donors each August. These letters serve to express appreciation for the donor’s commitment to M. D. Anderson and reference various ways in which the Annual Fund was utilized throughout the year. Recently, these stewardship pieces have also included useful refrigerator magnets, referral cards with the institution’s important phone numbers, a cancer-screening insert and a “Donor Bill of Rights.”

In November, M. D. Anderson also sends Thanksgiving greeting cards with artwork created by a pediatric cancer patient who participated in the M. D. Anderson Children’s Art Project.

Unusually, none of these mailings included a donation appeal. “We are careful not to ask people too many times for money,” says Michael Frick, associate vice president for development. “We never want them to think that short-term money is more important than our long-term relationship.”

All together, M. D. Anderson mails four appeals to approximately 100,000 active donors every year, in addition to sending about 2 million pieces aimed at acquiring new donors. These mailings are continually tested, tweaked and personalized, Lappetito says. “As we continue to add personalization and localization to our control package, it performs better,” she adds. For example, M. D. Anderson has found that a mail piece is more likely to generate a response when it mentions the city in which the recipient lives, contains a map with that location marked with a star and notes how many patients in the recipient’s area have been treated at M. D. Anderson.

Star power

M. D. Anderson also added a loyalty-building component to its donor acquisition package last year. The institution sent out a “Star Card” featuring a potential donor’s name, membership number and a design based on the Lone Star of Texas. The card doesn’t provide discounts or generate rewards points, but M. D. Anderson hopes it fosters a sense of belonging among recipients.

The Star Card mailings allowed M. D. Anderson to increase the number of new donors it acquired last year, despite a down economy, Lappetito says. And when Epsilon compared the response rate to a that of a control package without the Star Card, the company found that the mailing that contained the card generated a 19-percent greater response, with no change in average gift size. In addition, the mailing generated a cost-per-dollar-raised — which is the total cost of the mailer divided by total revenue — that was 8 percent lower than that of the control package.

The Star Card was not especially flashy or expensive. In fact, slick campaigns almost never work as well for M. D. Anderson as do low-gloss, high-touch mailings, Frick says. “Sometimes what looks like a gorgeous, unique and strong package [one that wins design awards] is terrible for fundraising,” he says.

“Something plain and relatively simple and inexpensive is far more effective.” Lappetito concurs. “Every year we test new direct mail packages, including four-color pieces in glossy envelopes. But they never work as well as the plain-but-personal approach.”

The personal touch

Indeed, when donors make their first contributions, M. D. Anderson mails them a personalized “welcome kit” that asks about the areas of research and patient care in which they are most interested. In addition, all subsequent mailings include donors’ names and addresses as well as variable data copy that creates relevant messaging for donors. Copy includes their Donor Loyalty Club levels and the areas in which they live.

Also key to the strategy is the tone of the mailings. Some conversations with donors make appeals to their emotions, others to their intellect — but they are always measured and informative. For instance, while a letter might tell the story of a patient who has recovered from cancer, it also will include specific details about some of M. D. Anderson’s latest research. “We will not use alarmist fundraising at all,” says Frick, explaining that such scare tactics are inconsistent with the goals of the institution. “Cancer is a serious topic, and we approach each letter as an educational opportunity.”

Not only does M. D. Anderson get to discuss its efforts with donors; it also gets a chance to learn more about its mail recipients. Frick says cultivating both opportunities has helped M. D. Anderson develop strong donor relationships: “It’s this combination of personalization, respect and recognition that fosters continued donor participation.”

Editor’s Note: Curious about what types of cancer are represented by the lipstick colors on the previous pages? See The Colors of Cancer (PDF).

What Other Nonprofits Can Learn from the M. D. Anderson Approach

Since it began its loyalty program, M. D. Anderson’s philanthropic direct mail revenue has increased by more than 500 percent. Here’s how other charities can profit from the marketing example set by M. D. Anderson:

One: Use direct mail to educate. Focus on a specific faculty member’s research, a physician’s patient treatment programs or a successful clinical trial to demonstrate commitment to remaining on the forefront of research.

Two: Eschew alarmist fundraising. Be serious and respectful. Never say someone will “die without your help.” Such messages capitalize on the recipient’s fear and guilt, and ultimately undermine donor loyalty.

Three: Focus on the long-term relationship. Express gratitude without asking for money so donors feel cared about and appreciated, while making them more likely to remain committed to the organization.

Four: Be transparent. Tell donors how their funds are being used. This demonstrates fiscal responsibility and reminds them they are part of something larger than themselves.

Five: Personalize and localize. Align direct mail packages with the recipient’s location and interests to get better results.

Six: Test rigorously and continuously. Test mailings and try new approaches every year for consistent improvement and strong results.

Targeting mailings can bring more return on your investment

Targeting

The way to consumers’ hearts may be through the stomach, but bakery chain Cinnabon got closer to their pocketbooks through a targeted direct mail campaign created by Money Mailer Direct Marketing.

Late last year, the brand sent mailers to small businesses within a two-mile radius of each of its mall locations in the hopes of increasing brand awareness, order size and store visits during the holiday season.

The 11- by 15-inch glossy mail pieces included 20 perforated coupons that businesses could post in the office for employees to use while holiday shopping at the mall. And it seems they did: Despite a slower-than-usual shopping season, Cinnabon saw a 54-percent return on investment and a 4.6-percent redemption rate for the coupons.

“By targeting small businesses with these coupon pages, we reached more people for less money than sending individual coupons to homes,” says Cinnabon president Geoff Hill, who adds that the company plans to use the same approach this upcoming holiday season. — Lori Bremerkamp

An expert formula for pairing direct with e-mail.

By Neil Feinstein

In this economy, low-cost e-mail is still delivering a strong return on investment. But direct mail remains a vital part of the marketing mix because of its accountability. It just has to work harder and smarter and follow the direct marketer’s equivalent of E=MC2.

In the alchemy of marketing, relevancy equals response. When you know exactly who the customer is and what they care about, a meaningful mailbox message combined with an offer they can’t refuse is pure marketing gold.

But thanks to recent economic events, many marketers are shifting their budgets online from other channels, including direct mail, to save a few bucks. This isn’t necessarily the smartest move.

People still like — and respond to — mail. And rather than relying solely on e-mail, the best approach is a one-two punch. Our clients get the best response when they combine mail, e-mail and other channels. A perfect example is a campaign True North helped organize for a New York–based credit union looking to increase its membership.

We targeted existing members, sending them personalized e-mails featuring buttons that linked to a landing page where they could list family members and colleagues they thought should join the credit union. One week after the e-mails arrived in inboxes, 20,000 direct mail pieces landed in mailboxes to reinforce the message. The combination quickly produced 5,543 new members — 122 percent above expectations.

The campaign was successful because of its integrated approach that reflected a consistent message across multiple channels. E-mail was a way to prepare recipients for the direct mail piece they’d soon be finding in their mailbox.

So when should you use direct mail vs. Digital or another medium? Each channel has its strengths and weaknesses, so it’s really a decision of finance, simplicity and immediacy. Start online if all you have is an e-mail address. However, when time and money allow, direct mail with a refreshing and creative promotion might be the better way to go for the simple reason that, in this era of clogged inboxes, a great print piece really stands out.

Neil Feinstein is director of creative strategy for True North Inc., a New York–based advertising agency specializing in direct mail and Web design.