Marketing Plan

Here it is...I am laying it all on the line for you...or at least someone else did!!! I know this was not a promised week to blog, but I just found this article on Gather.com and had to share it with you.

And for those of you who are not familiar with Gather.com, it is essentially a site that will take the blogosphere and condense it into bite sized chunks of similar topics.

I think next week we should talk about eMarketing. If you enjoy reading this blog or any other blog, you should be blogging for you bank. I will help you get started on Monday! In the meantime, read and share this fantastic article regarding the importance of marketing planning...including how to get started!


Happy Marketing!

Jenna

Notes from NAMP #2

Direct mail in the New Frontier: Here to Stay or Only a Click Away
Speakers: Catherine Carter, Broward Center for the Performing Arts, Ft. Lauderdale, FL; Shelly Felder and Howard Levine, 92nd Street Y, New York City; Rick Lester, Target Resource Group, Woodland Park, CO; Laura Sullivan, Penn State’s Center for the Performing Arts, University Park, PA

In 2006, direct marketers mailed 116 billion pieces of direct mail. Quantity increased by 15% over the previous year, primarily because there is no spam filter to get through or “Do Not Call” list to deal with. Plus many people seem to prefer a tangible, paper offer. Direct mail expenditures in 2006 were $59 billion.

• National response rate for all offers was 2.15%
• On a national average, one year lapsed subscribers had a response rate of 3.3%, traded names 0.14%, rented names 0.05%, and current single ticket buyers 2.6%. It was suggested that it is too expensive to mail to rented names.
• New rule is in place: always step on your offer. Usually you will mail first, then you should follow up with an e-mail solicitation. Houston Ballet sent out a postcard and had a 3% response rate. Then they sent out a postcard and followed up with an e-mail and got a 4.5% response rate.
• Even though people are not responding by mailing in an order form, Target Resource Group has found that people refer to the order panel before they go online. When they removed the order panel, they got a lower response rate.
• A/B test everything. What offers work best, which list segments work, sequence of mailing
• Increase the frequency of your message in front of the target groups which regularly over produce on mailings.
• Nationally 96% of all subscribers come from contacts already in an organization’s database and only 3.5% come from trades, while 0.4% come from rented names. It should be noted that of the 96% of all subscribers within an organization’s database, on average 6% of all subscribers are on the organization’s “do not contact” list.
• We should build a predictive model of people who are likely to respond and then target lists with this predictive model.
• The 92nd Street Y covers events around the country on their website and then they tie it back into their programming. Often other blogs pick up their articles and link back to their website or blog.
• YouTube has now launched a non-profit channel. The 92nd Street Y video was featured as the non-profit video of the week, and had over 100,000 views. YouTube now gives non-profits their own landing page which can be tailored with your graphic identity.
• They also started making restaurant reservations on behalf of their ticket buyers through http://www.opentable.com/.

The greatest gift of all...

Tis the season for giving thanks, Norman Rockwell paintings, the Coca Cola bears, strategic planning and thanking your best customers with candy or apples or some other typically edible arrangement they can share with all of their staff.

My blog today may seem like a bit of a rant but I so whole-heartedly believe in this topic that I feel it is necessary to talk about, so let's get started.

You all have the right idea. Because your customers have been faithful to you for so long it is important that during this season of giving you find a way to say "thank you." But here's the thing...(I will go out on a limb here) most of you say thank you with food. UGH!

Your grandmother has loved your for your entire life, do you say thank you to her with Florida Oranges? And what about your siblings? Do you tell them how much you love them with a basket of assorted meats and cheeses? NO!!!!!!!!!!!!!!!

Let's talk for just a minute about how we give gifts. For those family and friends we know the best...we know what their financial situation is, we know what their family life is like, we know what they need (because they tell us) and we know what they want (because they tell us), we give them what we know they will love.

My mom this year will be receiving a Kitchen Aid hand mixer in red because she is tired of splattering cake batter all over the kitchen...her current hand mixer doesn't have a low setting and the new one will...I tested it. I could have taken the easy road and given her a gift card to pick out something she wanted, but that isn't very personal.

I will be getting my hair cut this week with the same woman I have had cut my hair for the past several years. We have a 40 minute conversation every six weeks or so...I don't know her well, but I know she just bought a new car a few months ago, and I know that she and her husband love to eat at a restaurant called nine75. I could get her an assorted meat and cheese basket because it's easy, or I could get her a gift card for car detailing, gasoline or a great meal.

I have a point...do you see it yet? I guess I'll have to get to it now...

For those of you out in marketing land, don't take the easy road with gift giving. Sure you save a little money when you buy in bulk. But your best customers are as different and individual as your family members. If your practice is to give gifts based on the longevity of the relationship, that's OK...but have you thought about REALLY thanking the customers who help you (the bank) the most? Have you thought about thanking the most profitable customers you have? If not, try it. I lose sleep over the amount of money we spend as marketers to thank the customers who are 80 years old and have 3 CDs and opened a young savers account for their granddaughter 20 years ago.

Granny deserves thanks, but what about the small business owners who have both their commercial and retail accounts at your bank, they own a home, own a business, have a couple of cars, offer direct deposit to their employees and have half a dozen deposit accounts with you...are they worthy of the assorted meat and cheese basket (even if there is wine in it)? NO, they deserve better than that. They trust you with their livelihood. You know more about them than you do about your second cousin who's name you drew for the family gift exchange.

I believe your best customers will appreciate an annual review of their accounts to be sure they have the best rates and lowest fees possible more than they will appreciate the food. That builds value in a way that your competition will never understand. Not to mention the fact that you may learn about a new challenge or opportunity that profitable customer is facing...talk about a HUGE opportunity to be the expert and get the lifetime relationship.

And from a cost perspective, at the very least it will save you a little money...it could even make that customer more profitable which will put money on the bottom line...which is more than I can say for the assorted meat and cheese basket!

Think about it. It may be too late for this season, but try it next year or the next time you give your best customers a gift. Let me know if you need help calculating the ROI on your giving...or even an ROI projection of a new giving program. Trust me. Reevaluating your gift-giving procedures will be worth it.

And check out this video...it will solidify some of the points I am trying to make!



Happy Thanksgiving!
Jenna

Notes from NAMP #1

Well I got back from the NAMP conference almost two weeks ago, and I was planning on blogging about all the exciting things I learned. Then I realized I had to move into the house that I closed on three days before the conference. I don't know what I was thinking when I decided to switch jobs and buy a new house all at the same time!

Things are starting to get back to normal so I wanted to share some of the notes I took at the 2007 National Arts Marketing Project Conference in Miami. Below are my notes from the Keynote Speech from J. Walker Smith:

Keynote Address: J. Walker Smith
President, Yankelovich, Inc.
Chapel Hill, NC

• Check out http://www.gethuman.com/
• Marketing is now shifting to the intangibles—you can’t market the product, you have to market the experience. Loews theatres has a program for moms and children to see a movie in a movie theatre. They lower the volume and keep the lights on because its not about the movie, it is about the mother/child experience.
• ¾ of Americans say that they are time starved and the average consumer says their time is worth $1.25 per minute. If you keep them on hold, they will get upset and expect to be compensated. If you keep them on hold, then give them something worth a $1.25 per minute. Try to make all interactions “zero time interactions” with instant gratification. Telemarketing calls better be worth their time otherwise just the act of hanging up the phone on the caller will be deemed as 60 cents worth of wasted time.
• We live in a world where everyone is different. Being different is “cool” because there is no longer anything to conform to. By 2030, 40% of our population will either be Asian, African-American or Hispanic. White people are going away because their birth rates are lower than their death rates. Everyone will be different.
• The control has now shifted to the consumer. If you try to force them into something they don’t like, they will just fix it and then post the solution on the internet. A great example is 20 year old George Hott who figured out how to modify the iPhone to work on platforms other than AT&T, all because his family had a T-mobile family plan and didn’t want to spend more money. He then posted his solution on several websites.
• In 1960, ¾ of people by age 30 had left home, finished school, married, had children and were financially independent. By 2000, only 30% of the population had done these things by age 30. Difference is the only common value today. People want to be treated like individuals and differently. People want intangibles (the experience) to be tailored to them in the marketing and execution. People now expect to be treated as differently as they are.
  Put your consumers in the loop—in 2006, 56% of consumers spent more than 2 hours researching purchases over $100. They want to know all the behind the scenes information.
• One of the reasons that traditional print newspapers are declining is that you can’t get a customized newspaper tailored only to you. But with RSS feeds, you can set up interests and only get information you want and it is sent to you. Put your consumers in total control (chad’s note—is this why subscriptions are failing?). The car manufacturer Scion now manufactures cars that are built to individual and unique specs that consumers send to them via the internet. They will build you a car like none other. Their tagline—“we relinquish all power to you.”
• Meyer Gas sends their consumers a text message to their phones alerting them when gas prices are going to go up so that they can drive down to the station and purchase before the prices increase.

Survey Says...

Any Family Feud fans out there? Good ole' Richard Dawson! I used to watch that show a lot. But this post really has nothing to do with that so I will get to it...

How many of you are members of a loyalty program? I collect miles on every airline, I participate with every major hotel chain, the grocery store, Sephora, Eddie Bauer, the corner convenience store (fountain soda punch card anyone?) and any other company who asks me to become a member so I can receive great perks and valuable discounts. I am a sucker. But I also pony up so I can see how they market their programs and reward their loyal customers.

It should start coming together for you now!!!

So, as I have mentioned before, I am as faithful to Hilton properties as I can afford to be. They let you double dip (so for each stay I get airline miles and HiltonHonor points!) and they are everywhere!!! Mostly I stay with the Hampton Inn properties...that's my price point!

I have mentioned the new Hampton Inn near the MarketMatch headquarters to you in the past...remember the remarkable customer service I received from Jason a few months back (go back and read the blog from September!). Well, he did it again.

Every few stays at a Hilton property, I receive an email asking me for 10 minutes to complete a survey to evaluate the quality of my most recent stay. I finish the survey every time they ask because the way I see it, if they didn't want to know, they wouldn't ask. This has been going on for YEARS. The more I do it, the less I think the information actually goes anywhere.

So, I filled out the survey for my most recent stay at the Hampton Inn near the Dayton Airport...They scored a perfect score on nearly everything. Toward the end of the survey, they asked questions about the sundry shop in the lobby of the hotel...this was not a perfect score for me. Hilton is notoriously faithful to Pepsi products, and I have been a faithful Coke-a-Cola girl my whole life. So, when they asked an open ended question about how they could make the sundry shop better, I replied with, "I wish they carried Coke products...Diet Coke to be specific," and left it at that. A few more questions and the survey was over.

The next morning, I was in my office checking email, and imagine my surprise when I had a new message from Jason, the General Manager of the Hampton Inn near the Dayton Airport...His message simply said, "If you wanted Diet Coke, you should have asked...I stock the cooler myself and try to keep a good mix, but for our loyal guests we want to make sure to have what they want. I will have Diet Coke for you when you return in November."

HOLY CATFISH! They actually share that information with the general managers? I had no idea!!! I am so glad to hear that those surveys don't go into the survey abyss!!!

So, what's my point? I have more than one...

1. Do you reward your loyal customers? You should. It doesn't have to be costly, but it does have to be warm and fuzzy.

2. Do you ask your customers about their recent experiences? WHY NOT?!?!?! You should be.

3. If you are asking what your customers think, do you take the feedback seriously?
3.5 Do your customers KNOW you are taking the feedback seriously?

4. How do you communicate the changes you will implement?

My grocery store has teamed up with United Airlines and for every $250 I spend at the grocery store, I get 125 United Airline Miles. You need to reward loyalty and give your customers a reason to not shop on price. There is a Super Wal Mart two blocks away from my grocery store...they carry the same products at a much lower price, but I really like to travel so those miles mean more to me than a few bucks at the grocery store.

Creative loyalty rewards can be what makes you different...What makes you different is NOT your customer service or the fact that you are a community bank...everyone says that.

No great reward comes without great risk. Dare to be different!! Reward your customers creatively!

Jenna