An Adventure in Product Development

Today I head off on an adventure....in product development and travel.

I am heading to Kuala Lumpur, Malaysia to be the keynote speaker at a conference for Asian bankers on product development.

The adventure will be in two parts....the journey and back and the interaction with bankers from 1/2 a world away.  One thing that I have learned from all of my international travels is that banking is banking, regardless of the geography.  The timing of issues may be different, but the issues are widely the same!

So, I am delivering a comprehensive set of sessions on the product development and management process that keys on customer communication, internal engagement, and meeting the needs of your targets...universal topics that are mission critical to product mangement.

I will keep everyone posted on my travels and adventures...

Cheers!

Bruce Clapp

How To Price Software Without Just Rolling The Dice

Pricing of new software products is one of those things that poses quite a challenge to even the most sophisticated product managers and marketers. Too often pricing is guesswork or based only on comparable products in the market, which inevitably leads to a price that doesn't optimize profits overall.

I just read a great post by Dharmesh Shah that I would like to share with you. "How To Price Software Without Just Rolling The Dice" compiles some critical lessons most of us have learned the hard way over the years. Check it out.

What are your thoughts and advice on software pricing?

Instant Issue Technology as a Total Marketing Tool

Instant issue technolgy for debit cards is a meaningful tool for community banks. With Capital One advertising the concept for you ( you know, "I want my mother's picture on my card") the ability to create and issue debit cards on the spot is a tool that we would expect only the largest of banks would be able to implement affordably. Not true! This piece of technolgy coupled with an imaginative marketing program, can truly be the foundation for new sources of income for the bank.

You can issue debit cards that are totally personalized for each customer (how fun!) . Your customer can upload the photo they want on their card (family, baby, pets, whatever). And they get their card today instead of 2 weeks from today so they can be using the card sooner (which makes you more money). And they get replacement cards sooner, so you don't have 2 weeks of downtown with no card usage. The biggest banks can't do this across a large distribution network without spending a large hunk of money... not likely to happen with their financial positions today. This can be a real competitive advantage for community banks and credit unions. Your cost to implement will depend on whether you want one central location that can print the cards or one in each banking office, but a single location can be implemented for between $20-30,000.

But even more than this, you can create affinity card programs with local schools, universities, major employers, and much more. These local relationships can be coupled wtih some creative sponsorship opportunities and marketing programs to create true, local partnerships that will move the market share needle in your market for some time to come. Loyalty becomes a given and competing with the big banks is made EZ.


If you are thinking about implementing instant issue technology and a creative marketing program with it, you may want some outside assistance. At Market Match, we can help you through the maize of creating a fail safe program. Read how others are doing this at http://www.instantissuance.com/. Call me, I would love to have a discussion about how these programs work with you. Find me at www.marketmatch.com.

Have a great week!
Sharon

What if they are just tired?

In the last few weeks, I have been doing quite a bit of traveling. I have gotten the opportunity to speak with many of my colleagues from around the nation, and they are all saying the same thing -- ticket sales are down this year. Last year, I kept hearing that well branded products were doing very well, while less known fare was struggling. Now I am hearing that even annual cash cows (think A Christmas Carol and Nutcracker) aren't doing well. When a classic theater has problems selling Romeo and Juliet, you know something is up.

So it got me thinking about what is going on (and of course, this is just an opinion). We are all seeing reports that even though some aspects of the economy might be improving, many are still getting worse, such as unemployment. Unemployment is the highest is has been in 20 years. Last year when the stock market crashed and it became clear we were all in for what looked to be an unprecedented global economic crisis, many companies panicked. They didn't know how to project future revenue, so they opted to look at the side of the ledger they could control -- expenses. With that came the layoffs.

Those lucky enough to survive the layoffs took on responsibilities that were normally handled by two or three people. Many managers noted that the resulting model was unsustainable, but thought that most people could put up with the extra load for a short period of time, hoping that the economy would improve and that hiring would be possible. Well, it has been over a year, and unemployment is getting worse, so the unsustainable model of having one person carry the workload of three continues.

As arts administrators, I no longer believe our largest challenge is dealing with people's fears about the economy. That was so last year. Instead, we now have to deal with people who are simply exhausted, and when Friday comes, they want to do nothing more than spend the weekend on the couch in order to recuperate and be ready for the next grueling work week. Whereas last year, our largest competitors might have been other cultural destinations or sporting events, I am starting to think that our most significant future competitor might be cable television and a warm bed.

Direct Mail - Is it still effective?

Each of us probably receives several direct mail solicitations for credit cards every week. Something like 2 billion pieces of credit card mail was sent in 2008.



How has the proliferation of credit card mailing impacted the effectiveness of your institutions direct mail?



Are your direct mail programs generating a sufficient MROI?



Sure, the credit card industry has impacted response rates. A good response rate on prospect mail use to be 75 basis points and now institutions should expect prospect mail to generate a response rate of 35 - 45 basis points. Customer response rates have dropped also but a well planned customer campaign can still generate a 100 basis point (or higher) response rate.



There are three components of a direct mail program: target audience, relevant offer and creative.



What drives the response rate? 70% of response is tied to selecting the best population or target audience for the mailing. 20% of response is tied to the offer and the remaining 10% or response is driven by the creative.



Unfortunately, many institutions spend to much time and money on the creative and creative has the least impact on response. Creative needs to be "on brand", clearly defined the offer and have a specific "call to action." That's it!



Put the bulk of your effort into defining the target audience! Make sure you have a relevant offer!



Direct mail can still drive balances and revenue if done properly!



Have a great weekend!



Mike

Cover Your Basis - PPC and SEO

There’s a great tactic that will help your list building efforts -- both with paid AND organic search.

And it’s not much additional work … if you already have a lead generation landing page you’re using for PPC, you can cover your basis on the organic side with a few additions. Here’s how:

--Start by creating a new URL for SEO purposes using the existing PPC landing page.

--Make sure the new SEO URL is packed with your targeted and relevant keywords (one caveat: before this, make sure you’ve done your research to see which keywords to use and the search volume on each one).

--Add relevant and targeted keywords into the new SEO lead gen page’s tags including: title tag, meta description, and meta keywords. Also, if you have images on the page, make sure to add relevant keywords to those.

--If not already done, drop in the Google Analytics code to this page so you can track page visits/traffic.

After your page is indexed by the search engine spiders (which may take a few weeks), your lead gen page should start appearing in organic search rankings based on the keywords you’ve indicated in your tags.

What will also help your page’s ranking be more favorable is if you can get some backlinks from high traffic websites linking to this new, SEO landing page.

SIPA Marketing Conf. - Presentation on Leveraging LinkedIn

SIPA’s (Specialized Information Publishing Association) Mid-Year Event was in Miami last week at the Ritz-Carlton.

The event was a great success…from a networking, prospecting, and educational standpoint.
My presentation on Leveraging LinkedIn was also a success. I discussed many tips and tricks to use LinkedIn for events, content syndication, market research, PR, and more.

If you’re interested in a copy of my presentation, please email me (my contact info is in my blog profile).

Build the Box!

Greetings...

I had some great friends share a quote that they saw while enjoying the sites in Chicago... it goes:

"Don't think outside the box...build the box."

I LOVE the quote.  As a firm, our specialty is helping banks and credit unions Focus their efforts, build Momentum in their market and generate Results for their institution.  Our process has always been described as thinking INSIDE the box, as the information, key brand differences, etc. are all there, you just need our expertise to unlock it and make it all tangible.

The concept of "building the box" is a game changer to me...

Instead of accepting the realities you face (competition, economy, budget, etc.) we HAVE to create a new reality....in this case a new box...in which we can oeprate.

Think Starbucks.... did they operate within the confines of the coffee norms...49 cent bottomless cups of coffee, 25 cent refills....NO.  They created their own box.

Think American Express... did they operate within the confines of the credit card norms...gold cards, retail customers, corporate spending cards...NO. They created their own box.

Now....your challenge this fine Monday is to create your OWN new sense of reality, your own new box. For yourself as a marketer (outside the confines of budgets, media, staffing, etc.) and for your institution.

Find the NEW BOX that allows you the freedom to maximize your strengths, minimize competitive pressures, and increase success.

It's there...we just need to build it!

Have a great day!

Bruce Clapp

Put an End to Flying Blind: A Ten-Step Process for Creating a Go-to-Market Tactical Plan

by Laura Patterson

Many organizations can achieve substantial growth by entering a new market with a well thought out and flawlessly executed plan. The operative words here are well thought-out and flawlessly executed. It’s surprising -actually alarming -at how many organizations attempt this strategic endeavor without a Go-to-Market (GTM) plan and end up flying blind into new territory. Perhaps they skip this step because they think it is a daunting task. Or perhaps it is because the entry into a new market isn’t so much a deliberate decision as an opportunistic one – a step taken maybe because it seems like a good idea based on a few recently acquired new customers. As the CEO, we hope you will mandate that a GTM plan be created and reviewed before any resources are deployed to pursue a new market.

A GTM plan is a powerful tool for four reasons. First, it provides a blueprint or roadmap for how the organization will enter a market and create revenue. Second, it helps allocate resources toward the most profitable opportunities and fosters focus. Third, it allows for the coordination of multiple resources toward the achievement of explicit measurable objectives. And lastly, it increases effectiveness and reduces risk by clearly identifying the discrete tasks necessary for success.
A GTM plan doesn’t have to be a task that consumes the entire organization months on end. This article outlines a ten-step process any size company can use to successfully enter a new market. These steps involve:

1. Leveraging an ecosystem map

2. Establishing success factors

3. Defining the target market and market entry strategy

4. Creating the foundational elements

5. Developing the measurable objectives

6. Creating performance-based tactical programs for customer acquisition

7. Defining tactical program activities, budget, calendar and ownership

8. Enabling the sales team for success

9. Implementation

10. Evaluation

Let’s take a quick look at what each step entails.

Step One: Working from an Ecosystem Map
The first step is to understand the lay of the land. A useful way to gain this insight is to create an ecosystem map. An ecosystem map provides a visual representation of the network. It depicts all the network members, such as buyers, competitors, distribution channels, and influencers, and graphically represents the relationship of these members to each other. A key value of the map lies in its ability to identify and visually represent these relationships. By creating a map of the ecosystem you can assess whether the ecosystem is healthy, attractive and open to new participants. The ecosystem map will help you make a go/no decision and pinpoint the cluster of ecosystem participants and associated relationships that represent the most favorable environment for market entry.

Step Two: Establish Success Factors
Should you decide to pursue a market you will want to have a clear idea of what success is before proceeding. By answering these two questions you can define success for you and your team.

1. What constitutes initial success in this vertical (initial number of adopters, rate of adoption of first buyers)?

2. What constitutes longer-term success in this vertical (market share, share of wallet, number of customers, revenue)?

Your marketing team should use these success factors to create quantifiable and measurable objectives for the tactical plan.

Step Three: Define the Entry Points and Market Entry Strategy
Now that you have decided to enter a market and have defined what constitutes success, the next step is to create your entry strategy. We find answers to these kinds of questions can often help with creating the strategy:

1. What are the characteristics of the ideal customer and their buying process?

2. Where and who do they go to when looking for solutions provided by your company?

3. Who are the competitors’ customers and which of these customers is most likely to switch and why?

4. Who would be the first five, ten or twenty best first targets and why?

5. What kind of people (titles, roles) would be the best initial point of contact inside the customer targets that would accelerate access?

In keeping with the Boy Scout’s Motto, “Be Prepared,” this step prepares you to anticipate how competitors and prospective customers might react so you can anticipate potential adjustments and develop contingency strategies.

Step Four: Foundational Elements
Armed with your market entry strategy, there are three foundational elements that need to be developed to support the GTM plan: Your value proposition (why they should buy from you), your positioning (how are you better and different), and your message map that communicates your unique value proposition. These three elements will serve as the foundation for every subsequent market sales asset, such as product literature, public and analyst relations material, sales presentations and tools, website content, white papers, educational events, search engine key words and so on.

Step Five: Developing the Plan Objectives
Your measurable objectives are the basis of a GTM Tactical plan. For objectives to be effective they need to be quantifiable and actionable. The objectives provide focus, establish priorities and guide the development of all your tactical programs

Step Six: Create Tactical Programs for Customer Acquisition
You’ll want to design your tactical programs to support the strategies and objectives. In a GTM plan tactical programs typically include efforts related to establishing thought leadership, gaining support from key influencers such as analysts, reporters and bloggers, to developing online and offline paid advertising to create air coverage for your sales team, producing and delivering training and tools to enable the sales team, and of course to efforts designed to generate demand and leads. Keep in mind the contingency strategies you identified earlier and give some thought to what other tactical programs if any might be needed to support these contingencies.

Understanding and documenting the customer buying process will be pivotal to knowing which influencers to approach, what thought leadership venues to secure, which tools are preferred and at what point in the buying process prospective customers want and use these tools. The customer buying pipeline provides insight into how to engage prospective customers to accelerate consideration and preference.

Step Seven: Define Tactical Program Performance Targets, Activities, Budget, and Calendar
Once you have the entire tactical program outlined you will need to put the meat on the bones. The first step is to establish performance targets and milestones for each tactical program. Since various activities generally comprise a tactical program, each of these activities needs to be identified and added to the plan calendar. Execution of the plan is where the rubber meets the road and it is often the lack of detail and a clearly identified owner for activities and their corresponding tactical program that derails plan implementation. This is also the step where you want to develop check points for assessing whether performance targets are being met and execution is going as planned.

Step Eight: Sales Enablement
Often times an organization believes that once the sales organization has been informed of the product’s features, reviewed information about a new market, and been given a set of the tools, they can check sales enablement off the list. Your sales team needs to understand why the organization is pursuing this new market, what it will take to be successful, the strategy and tactics being deployed, and the customer buying process. During the sales training you will want to review various sales enablement tools, what they are, how and when to use them. The sales enablement tools might include call scripts, presentations for initial meetings, personas, use cases, playbooks, etc.

Steps Nine and Ten: Implementation and Evaluation
The plan is complete. It has been reviewed and approved. Marketing, sales management, product engineering, operations, customer service, finance, legal are all in the loop and are all on-board. You’re ready to move from planning to implementation. Upon commencing the plan it is essential to monitor reactions from every key connection and to every activity so course corrections, if needed, can be rapidly made. The checkpoints previously established serve as an opportunity to evaluate the plan and your progress. Once the plan is complete, make time to debrief on what went well, what could have gone better and to decide next steps.

About Laura Patterson

Laura Patterson’s marketing and sales career spans nearly 30 years having worked for both large public companies such as State Farm and Motorola and as well as start ups. In 1999 she co-founded VisionEdge Marketing (http://www.visionedgemarketing.com), a data-driven metrics based strategic and product marketing company that specializes in improving marketing performance and helping organizations create a competitive advantage designed to attract, secure and retain profitable customers. Author of dozens of published marketing and branding articles and the books Gone Fishin' and Measure What Matters and the recently published Metrics in Action: Creating Performance-Driven Organizations.

Do we really know the markets we serve?

If you were to ask the President of a Community Bank or Credit Union, "how well do you know the market that your institution serves?" Chances are the vast majority would tell you that they know their markets "inside out." To their credit, they really do believe their response to be true.

Unfortunately, most of the time, their perception of the markets they serve is based on observations and intuition and do not accurately reflect the true composition of their market.

Fortunately, the cost of obtaining market data has decreased significantly over the last couple of years enabling community banks and credits unions to gain access to the same data that their regional/national competitors have had for years.

Through market segmentation, management has the capability to look at the composition of their markets, identify those household with the highest propensity to purchase specific products, gain knowledge of the balances those households maintain, and can even determine the delivery channel they prefer and how best to reach those households with a pertinent offer.

Sometimes this type of analysis confirms how management views their markets, but most of the time this type of analysis is a real "eye opener."

Using this type of analysis as the basis for strategic planning enables the institution to set quantifiable, achievable goals. Being able to communicate how the goals were set, makes it easier for management to get "buy in" from the individuals responsible for achieving those goals.

Do we really understand the market we serve? If we take advantage to the tools that are available, the answer can be a resounding "yes"!

Have a great week/weekend!

Mike

Be A Good Host

As I sit here writing the report for a recent competitive shopping report, I thought I'd share some of the "low-lights" and talk about fixing them.

I've done these shops for clients all over the country ... experiencing life as a potential customer who's motivated to switch checking accounts, and the results always amaze me. In every market that I've done this in, from California to Michigan, nearly all of the experiences have been lousy. If I was really in the market for a new checking account, I'd have a hard time finding an institution that I trust. Here are some examples:

• The "Point and Send": When a teller is handing off a prospect to a new accounts rep - or worse yet, simply sending them to a brochure rack, they simply point in the general direction and say "Go there."

The Fix: Whenever possible, the teller or reception person should walk the prospect to the new accounts person ... preferably after introducing themselves and getting the prospect's name and asking a few basic qualifying questions (where they bank now, what kind of checking account they have now, do they use debit/online banking/bill pay) ... and make a personal introduction to the new account rep and explain the situation to the new account staff.

• "Bored Guy in Ties": I walked into an empty branch where almost every office was staffed with a bored looking guy plankly staring at his computer ... I can only assume checking his Facebook account or playing solitaire.

The Fix: They could have been doing ANYTHING productive: writing personal, handwritten "Thank You" notes to new accounts, conducting random account reviews then making outbound calls with recommendations to top customers with suggestions for products that may help them ... anything!

• The "Product Puke": This is my favorite and most common. When the prospect says that they are interested in checking and the teller or new accounts person READS from a sales brochure literally every account with fees and features. I've had folks talk to me about 50+ accounts (and I'm only 38!!!)

The Fix: This ONLY happens when your staff doesn't ask qualifying questions. First find out how the prospect uses their checking (average balance, access needs, etc.) and make a recommendation based on their answers.

The bottom line here is simple:

Treat every customer as you would treat a guest in your home.

• Shake their hand and welcome them
• Introduce yourself and others
• Never "Point and Send" - escort them from place to place
• Offer a drink of water or coffee if they are sitting to talk to new accounts
• Find out what they need and make a recommendation - you are the expert!
• When they are leaving, walk them to the door and thank them for coming in

These basic - common sense - acts will certainly make you stad out from anyone else in your market.

Take care and Happy Veteran's Day,

Eric

Why your bank's strategic marketing plan can't wait!

It's that time of year when everything begins to compete for our time...the Holidays are here, family activities are in full gear; and wrapping up this year's marketing activities, planning the budget for next year, keeping an eye on new legislation, and many more items are also priorities. What I have found in working with numerous banks over the years, is that it is all too easy to let the marketing plan for next year be put off until January. Does this sound familiar?



I know it takes alot of time to research the market data, competitor data, review internal reports on balance sheet, profitability, study MCIF reports to find those golden opportunities, meet with division heads to find out their priorities and goals and marketing support they require, and then create a targeted plan for the investment of your marketing budget. I feel your pain!



Yet danger lurks in letting this important component of your job go until January. Namely, that you lose the first quarter. If you write the plan in January, get it approved in early February and start implementing in late February, you can't really get started until late March or early April.



A good marketing plan should be designed so that you are more than halfway to all of your goals by June and many would agree that most of your budget should be spent by the end of September. For any sales results to have an impact to the bottom line during 2010, this is the optimal schedule. If you don't get started until March or April, you won't achieve what you could have with your marketing budget in 2010, and as a direct result, you lessen your probability of getting the same or an increased budget for 2011.



A great marketing plan is the basis for a great year! If you are strapped for time and would appreciate some outside support for this critical component of your job, contact us at MarketMatch. We have years of experience at it. Check out our new "Expert2Go" services here: www.marketmatch.com/services/expert2go.



It won't cost you much, but it could get you way ahead of the game!

Here's to this busy time of year,

Sharon

Catering to the Recession Mentality

Good morning!

What a great Monday it is...November is kicking in gear and its the 9th already!  Only 47 more days until Christmas.  That thought leads me to my post today!

In reading the Wall Street Journal today, an article struck me....it is entitled the same as the blog post- Catering to the Recession Mentality. It discusses the reality that many people are still sticky pretty close to the vest when considering spending. In fact, they quote two very telling statistics:

• 74% of people intend to buy items on sale
• 54% intend to use more coupons

If we are in fact retail businesses, we need to take a cue from our retail brethren and follow their lead (and the consumer, too!)  While I am a true value marketer and that may seem to fly in the face of using coupons and having "sale" items.  I am reminded of a time that at Bank One (yep, pre-Chase) we had a display at a technology fair and had t-shirts for sale at $10 a piece.  We did not see ONE shirt the 1st day.  The 2nd day, we got creative...we posted a sign with a $15 price with a slash through it and a note that said "Today only $12".  We sold EVERY shirt we had...and at $2 MORE than the day before!

The consumer is seeking VALUE...and if PRICE is their only sense of value then that rules.  If we can paint of different picture of value through relationships, account packaging, etc. we can address the consumer's need for a "deal" and take a page from our retailing brethren.

So you task is to strategize ways to bring VALUE to your marketing...price is one option...but leave that one for last....

Happy marketing!

Cheers!

Bruce

When messages send the wrong message!

Everyone has said something they thought was harmless (or worse yet - well intentioned) only to have the message completely misinterpreted. You have heard the old adage "sometimes it's not what you say, but how you say it."

Financial institutions often place messages in their branch locations designed to inform but end up sending the wrong message. Case in point - A community bank had a $5.00 fee for cashing a check drawn on another bank. A well intentioned marketer had signs created on colored paper, laminated and posted by the teller windows. The signs were created because there had been instances where a non-customer came in to cash a check drawn on another bank and became very upset about the $5.00 fee. The sign was very well written and stated the bank policy accurately and was created to help avoid future incidences.

The problem is - that sign was the first thing that both customers and prospects see when they walk into the branch. While the policy probably affects less than 1% of all visitors to the branch, it is boldly communicated to the other 99% of visitors to the branch. Clearly, this policy would best be handled with a one-to-one conversation as the need arises.

Take a fresh look at everything on display in your branches. Make sure that everything on display supports your "brand promise." Communicate your ability and willingness to serve as financial adviser's to both customers and prospective customers.

Display product information that is informative and suggests a "call to action."

Have a review process in place that eliminates outdated information and validates that messaging in your branches conveys the "right message."

Have a great week/weekend!

Mike

Meeting Your Twitter Customers Face-to-Face

Wow, check this out. While researching for an upcoming conference speaking gig, I stumbled on this great example of Social Networking done right.

Addison Avenue Credit Union, a $2.4 billion credit union in California with about 150,000 members, has a heavy online following through their website and Twitter. They provide a forum and encourage members to share their thoughts, concerns and advice online. And I'm not just talking about boring financial stuff either! As you can see from the photo, there's a posting about a cheaper alternative to Odwalla drinks (whatever that is).

They simply have a few rules:

We implemented Groups for you, not for us. Rather than corporate-speak and glitzy sales offers, Groups are here to let you to chat with each other, and to find and provide answers cooperatively.

Groups are public. While some of the Groups can only be posted to by Addison Avenue members (such as “Make Addison Avenue Better”), the majority of the posts are part of a broader public network where people other than Addison Avenue members are discussing things together and helping each other out. The more the merrier.

Anything goes in the discussion groups, except for things you wouldn’t tell your grandmother or personal account information. So share and share alike, and if you do have a specific issue regarding one of your accounts, we’re only a phone call or secure message away.

Everyone has their own story. What’s so great about Groups is that everyone is at a different place in life with different financial needs, which means everyone has something unique to offer. We hope you find what you are looking for. Welcome to the community.

We’ll help things along. If you see a response with a little Addison Avenue fencepost next to it in some discussions, that means it came from an “official” here at Addison Avenue. We’re here to help!

But here's where it gets REALLY cool. Not only does Addison Ave. understand social networking and how to add value to a key demographic, but they took it to a level that makes perfect sense ... and I wish I had thought of.

Recently, the credit union hosted a "TweetUp" where they invited Twitter followers to an in-person get together at a local coffee house to discuss topics ranging from the economy to the credit union's new campaign. Not only did they attract their existing Twitter followers and members, but also locals "just passing by."

That's what I love about this job. When you have the perfect blend of common sense and creativity, it's divine!

Take care,

Eric

Using Social Media...

Good morning...

As noted by Sharon, we conducted a series of marketing sessions in Indiana on Friday...what a great group!  One of the sessions dealt with the new mix of media; namely social media.

I thought I would share a cartoon that truly hits home on the emphasis on not only USING social media, but its understanding PRIOR to launching your participation...

Social media (Twitter, Facebook, blog, MySpace, etc.) is here and IS a mainstream communication channel. The decision is truly not should we, but how do we!

Need help figuring it out? Call me...

Have a great day!

PS...Remember to vote tomorrow....Democracy is a gift...exercise it!

Cheers!

Bruce

Blogging from NAMP...

Once again I find myself at the National Arts Marketing Project Conference, which is being held this year in Providence, RI. This is my fifth conference, and instead of presenting like I have done in the past, I really wanted to listen in on other sessions to hear what is being discussed. I have been asked to blog about my experiences for Americans for the Arts so these posts can also be seen on their blog.

This morning I was lucky enough to sit in on the Every Dollar Counts: Using ROI to Prove Marketing Effectiveness session. I decided to go to the session because one of my favorite arts marketing experts was presenting--Philippe Ravanas, marketing professor at Columbia College and former VP of Corporate Communications for EuroDisney. I have seen him speak at several conferences and he is always extraordinary.

This morning he discussed a situation he found himself in when he was the Manager of Client Development at Christie's in London. Each year, they would produce a beautiful catalog of auction items that they would send to most of their database. These catalogs were highly coveted, and cost the organization $20 a piece to produce, however Philippe noticed that his ROI (return on investment) for these catalogs was poor. It was costing him too much to produce and mail these catalogs in terms of how much revenue they were bringing in. After researching the problem, he found that they were mailing these catalogs to almost every purchaser, including those people who purchased once twenty years ago and people who only purchased a minor item just to get on the distribution list, as the Christie's catalog seemed to be a popular coffee table item. He soon cut back the distribution, and only sent the catalog to his higher end purchasers. This action greatly improved his ROI on the catalog.

It brought me back to a previous blog post I wrote about the future of the subscription brochure. If you read the post, you can see that I have some serious doubts as to whether or not a subscription brochure works as a sales piece. That being said, our subscribers at Arena Stage love our season brochure because it invites them into the process. There are articles by our featured artists, a letter from our artistic director, beautiful artwork, etc. We have heard from our subscribers that they anxiously await our brochure each year, and that these brochures have become collector's items. So they perform a very valuable function in maintaining relationships with our higher end purchasers, but they aren't necessarily needed to push acquisitions. In fact, we have found that other smaller pieces with a clear central message that cost significantly less to produce and mail actually perform better for acquisition campaigns.

As Diane Ragsdale says in her article Recreating Fine Arts Institutions : "Arts leaders may be tempted to think that the solution to dwindling audiences lies in better marketing, but if arts organizations are going to survive, they have to put more than the season brochure on the autopsy table." I completely agree with Diane...but what happens if an organization isn't even willing to put their season brochure on the autopsy table?