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Archive for the ‘Innovation’ Category

The Future of Marketing (Sooner Than We Think) Could Have Us Waiting for the Customer

Editor’s note: Today’s post was written by Nancy Scott, and was originally published on her blog, Marketing Brillo. It is reprinted here with her permission. Enjoy!

On January 6, I attended a talk by Stan Rapp, who co-founded Rapp Collins Worldwide and is now chairman of Engauge, the Atlanta-based full-service marketing agency with expertise in digital and interactive marketing. (Disclosure: I’m awed — and probably swayed — by the fact that Stan, courageously and with pleas from Morris Dees, managed the George McGovern presidential campaign).

Be that as it may, Stan’s informal dinner presentation on Thursday made a strong case that, going forward, the merger of direct marketing and digital lies at the core of what marketing will be. Stan calls that intersection “iDirect.”

In his view (and that of many visionary industry observers), traditional, Mad Men advertising — which, unlike direct marketing, is a) non-measurable and b) has been dominated by what Stan calls the Media/Agency/Nielsen Complex — has wasted some $2 trillion in the 20th century. In short, with no engagement, no brand-building, and no Internet connection, Stan describes 60 percent of print media advertising as “garbage.” At the presentation, he invited the professors in attendance to take last week’s edition of Newsweek and challenge their students to figure out how – by any measure (because there is none) – the ad dollars aren’t “wasted.” Pepsi’s defection from Super Bowl ads to online is cited by many as further confirmation of the trend away from traditional advertising.

Stan noted that “iDirect is the future of marketing. It is the growth engine at the confluence of Digital and Direct that enables customer engagement to drive a better ROI than ever before.”

Stan acknowledges that, while iDirect is the future, nobody is precisely sure what it will look like, but the perfect storm would appear to involve merging marketing across all channels, from online to offline, together in multi-variate, measurable touch points: mail, email, web, mobile, social, CRM, etc. This isn’t your Dad’s “integrated marketing,” though. That’s old news.

If a January 8 post by Samuel Axon on Mashable is correct, the billion dollar gate from Avatar is probably a solid example of the social side of iDirect at work. Now how do we take this outreach to the remainder of marketing?
Stan no doubt tackles this conundrum in his new book, Reinventing Interactive and Direct Marketing. I haven’t read the book (yet), but answers I’ll be looking for include: Read more

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Social and Email: When Worlds Collide

Over the past couple of weeks, 2 important stories have rocked the Internet: the launch of Google Buzz, and the news that Facebook intends to launch an email service of its own, called Project Titan.

Of course, Google’s product launch hasn’t gone off without a hitch-the company was a little bit too confident in its ability to automatically calculate which email contacts its customers would actually want to connect with socially, and privacy concerns and lawsuits have ensued.

Still, Google is fixing those issues, and it’s way too early to pronounce Buzz dead in the water. In fact, as MediaPost notes, Buzz is “the beginning of a hub that could eventually connect to forums, third-party PC and mobile applications, as well as other social sites.”

Facebook’s Project Titan is still being developed, but it is already hotly anticipated and expected to compete with Gmail.

On the Bronto blog, Kristen Gregory, Email Marketing Strategist for Bronto Software, called Project Titan “a move that takes us more toward a truly integrated channel – where search, email, social, etc. reside together and where the idea of a master preference center could ultimately live.”

Taken together, these two stories seem to signal a broader trend- the impending merger of email and social networking. Some people love the idea, some people hate the idea, but the same was once true of Twitter and Facebook. As the lines between the two begin to blur, how should brands and marketers react?

Email that’s integrated with social networking demands direct response campaigns that are integrated as well. Even today, our experience has shown that integrating social media and sharing capabilities into an email campaign improves response and conversion dramatically. As the email inbox turns into a social networking command center, users will be encouraged to engage in social sharing even more than they do now.

Dukky makes it easy to integrate social media and email campaigns. With our platform, recipients can share offers by email or on social networking sites like Facebook and Twitter. Even better, with our analytics, you can see who is responding, who is sharing your offers and how they are sharing them, and more, all in real time.

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Dukky Puts a Fresh Spin On Rewards Programs

I don’t know about you, but I’ve never had the patience for rewards-points based loyalty programs. It takes forever to save up for anything worthwhile, and in the meantime, I get bored and start throwing the rewards statements unopened into the “recycle” pile with my junk mail.

I’m not alone. As Dukky CMO Scott Couvillion told Incentive Magazine in a recent article, “Points are a liability for companies. They’re credit toward something the company has to one day fulfill. But the only contact they’re having with employees or customers is through statements saying, ‘Here’s your reward balance and here’s some stuff you can get with the rewards points.’ The reaction was poor, so they tried to migrate to digital, since it’s cheaper to maintain. Problem is, it’s also easier to ignore, so companies were getting even fewer responses.”

Dukky is breathing new life into old-school rewards points programs by using personalized gift cards to make them more appealing to consumers. Instead of sending out a catalog, Dukky mails out gift cards that respondents can use to snag reduced-points redemption offers from the program. The cards are activated on a personalized URL (PURL), and customers can share the offers with friends and family.

While the respondents are at their PURL activating their gift card, they can also complete quick surveys to give the company helpful information about how customers perceive their products and promotions. A little bribery, in the form of extra points for completing the survey, can be used to sweeten the deal.

Of course, Dukky also offers our first-class analytics dashboard so that the company can monitor responses in real-time.

Why does Dukky’s platform work better than simply mailing or emailing out statements? Personalized gift cards get people engaged, while the ability to share the offers socially offers a viral component that vastly increases the reach of the program.

For example, referring to Dukky’s campaign for Cafe Express, Couvillion explained to Incentive that “People were sharing on average with three other people. The most people will forward to is about nine, but on average three. That’s because it’s coming from a friend or relative.”

“It’s still direct marketing, but it feels personal. Apply that to loyalty programs. Consumers know what they want. Put content into the hands of your advocates and let them do the marketing. It’s a very different way of thinking about direct marketing.”

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75% of US Marketers Plan to Increase Social Media Spending in 2010

According to a recent survey, the realm of social media may play a key role in new customer acquisition. Good thing Dukky allows a seamless integration of social media into traditional marketing efforts.

Social media big winner in marketing mix

Marketers’ top priorities for 2010 will be customer acquisition and retention, followed by thought leadership, according to a survey by virtual events provider Unisfair.

Six in 10 marketers polled said acquiring new customers would be critical in 2010, while 48% would focus on retaining current customers—a particularly important effort in the recession.

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Our Direct Mail to Web API Integrates Social Media Tools

by the Dukky Team | September 3, 2009

Why does Dukky’s direct response platform combine traditional direct mail with new media technology? Based on a study conducted by the DMA, 42% of interested direct mail recipients prefer to respond to offers online. So Shawn Burst, founder and direct mail pioneer, developed a suite of products to capitalize on this finding by providing a stimulating online user experience combining gift cards and coupons.

A psychologically validated phenomenon, “coupon stigma,” partially explains the generally low usage rates of less than 2% of the traditional direct mail coupon offers. A Journal of Consumer Research study demonstrated that coupon users are stigmatized by others as “cheap.” The study confirms longstanding common knowledge that coupons are, in many cases, not socially acceptable. The Dukky Platform sees higher-than-normal redemption rates because both its offline and online distribution methods avoid this “coupon stigma” by completely changing the frame of reference: both physical and online coupons are reinvented as personalized gift cards.

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Consumers Still Rely on their Newspapers to Find Deals

by Teri | August 13, 2009

Newsprint remains the main source for consumers to find promotions.

Lately advertisers have been quick to criticize the ailing newspaper ad industry; however, in a recent study conducted by MORI Research for the Newspaper Association of America, or NAA, the initial findings were very supportive of the so-called dying industry. Of the 3,000 adults surveyed, 82% indicated that they “took action” as a result of newspaper advertising. Actions included coupon clipping, investigating products online, and completing a purchase.

Another interesting finding was that other means of advertising lagged far behind newspapers as the main place consumers checked for promotions. The nearest competitor was the Internet which had a measly 21% compared to newspaper’s 41%.
Read more

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The USPS and Direct Mail: Beasts in Transformation

by The Dukky Team | July 31, 2009

Since the start of the current recession, one business that has taken a particularly big hit is the mailing business. This includes FedEx, UPS, and DHL but the company that has faltered the most is the USPS. In 2008 alone the USPS saw a net loss of almost three billion dollars. The reason for this is largely due to the huge decreases that have been occurring in the amount of mail being shipped every year. The USPS thought it could survive solely on the bulk mail sent out by junk mail companies, but it appears that they were wrong.

Now the huge corporation that is the third largest employer in the United States, and gives jobs to nearly one million people is in serious jeopardy. This graphic presented by the website Good, gives an excellent indication of just how massive the USPS is, and how important it is for it to figure out how to pull itself through the recession.

Image Source: Flickr

This week there was a lot of news about the future of the US Postal Service. The President of the National League of Postmasters reported that the organization’s obligation to pay retiree health benefits is dragging its bottom line into the red (reportedly to the tune of $20 million in losses a day.) In response, the USPS is considering restructuring its employee benefits and cutting back on delivery and office hours. As you might imagine, these announcements have caused a stir.

We thought it was a good time to take another look at this graphic published by Good a little while back. It gives an excellent indication of the size of the USPS (according to wikipedia, it’s the third largest employer in the country) and how important it is for it to figure out how to pull itself through the recession.

The USPS is going to have to embrace some change to stay relevant – and so does its mainstay direct mail. Dukky’s developing new technology and listening to consumer sentiment in order to help our direct mail customers. This week we launched a demo that shows how we marry direct mail with social media and voice technology in order to increase response rates. See where the future of direct mail is heading here. We hope the USPS will follow suit and innovate alongside us. Because when change is brewing, the worst thing you can do is put down your head and avert your eyes.

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Should All Marketers Join the Social Networking Party?

by Kristen | July 16, 2009

Party2

The beauty of social networks rests in their ability to filter the noise of the internet and surface high quality and relevant information.

For instance, on Twitter I follow people I trust who are talking about subjects of interest like online marketing, social media, finance, and journalism. My Facebook friends keep me updated on my social circles, even when I’m living on the other side of the country. And LinkedIn’s industry groups connect me with insightful articles and discussions.

Yet social networks are constantly polluted by voices that care little for quality or privacy. Overly eager marketers, spammers, and other wily strangers often infiltrate my personal streams of information. I have to work to keep all of my accounts spam free.

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Direct Marketing News Round-Up: New Products, Same Old Economy

Direct Marketing News Round-Up: New Products, Same Old Economy

This week we found some interesting articles about some new technologies out there both for direct mail, and also for the ever-expanding social media networks. Of course there was also the economy wreaking it’s usual havoc upon the market. Please enjoy:

Intelligent Barcodes are here; A new and improved barcode helps mailers make the most of their direct mail.

Run Your Vanity URL Check Across 122 Social Networks, NextMark: Been trying to find the perfect social network to post your brand, but been having no luck? New technology helps you figure out where your business is, and where it isn’t.

The 10 most annoying online viral marketing campaigns of all time, PC Authority: A look into some mislead, but incredibly successful marketing campaigns. Perhaps wrong is the new right?

Debt-Burdened Printers Make List of 10 Most Bankruptcy – Prone Industries, What They Think: Is finding the printing industry on this list proof enough that direct mail is in dire need of a serious makeover?

Will the USPS be back, Blogspot: Everyone loves a good comeback story. But this blogger finds it hard to believe that the USPS will make it in the end.

by The Dukky Team | July 10, 2009

Tech2

Intelligent Barcodes are here; A new and improved barcode helps mailers make the most of their direct mail.

Run Your Vanity URL Check Across 122 Social Networks, NextMark: Been trying to find the perfect social network to post your brand, but been having no luck? New technology helps you figure out where your business is, and where it isn’t.

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The Road Less Traveled

By Brice Sanderford | July 9, 2009

Dukky Mailer3

The direct mailing business has not seen many drastic changes in recent years. Create an appealing offer, make a list of recipients, purchase the supplies, and send out your offer in mass. But in today’s market the traditional direct mail approach is proving to be less and less effective. Only the most planned out and effective direct mail campaigns prove to be worthwhile. The simple truth is that many of us cannot afford to spend the time or money that it takes to gain a significant ROI from direct mail.

Where was it that we made a wrong turn? Was it believing that the process we had was good enough already, or was it knowing that change was in order, but not having the dedication or resolve to adapt to the approaching obstacles?

The current state of the economy has made inefficiencies in the direct mail industry all the more painful. Less money generally means less spending, and when you are a marketer that is the last thing you want to hear. Even worse is that the direct mail was already facing a growing list of obstacles before the economy took a nosedive. The everyday consumer has grown tired of the 560 pieces of “junk mail” they receive each year, environmentalists have attacked the industry on all fronts for its massive amounts of waste, and online technology is rapidly changing the way consumers live and shop.

So what are we to do? Some of us are brainstorming new and innovative ways to cut back on waste, to make their products more environmentally friendly, and to make sure that their lists are getting to people who actually want them.

Companies like Dukky are trying to do more than just survive the recession; we are aspiring to flourish through it. By allowing the consumer to choose from lists of up to 40 offers, that were traditionally sent to the consumer one at a time in direct mail, we give them the ability to decide real value for themselves. The personalized URLs on each of the mailers move the marketer’s relationship with the consumer to move online. We then tap into the power of viral marketing and allow consumers to share their favorite offers with friends in their social networks. Bets of all, our online dashboard lets marketers see when, where, and by who their offers are activated and used, finally giving brands the ability to know just how effective their offers are.

We are not saying that our recent innovations will they solve all of the problems that direct marketers face today. We simply believe that this is a start, and for the times we’re in, a start is good enough.

The direct mailing business has not seen many drastic changes in recent years. Create an appealing offer, make a list of recipients, purchase the supplies, and send out your offer in bulk. But in today’s market the traditional direct mail approach is proving to be less and less effective. It takes a lot of time and money to get a significant ROI from direct mail the old fashioned way.

Where was it that direct mailers made a wrong turn? Was it believing that the process we had was good enough already, or was it knowing that change was in order, but not having the dedication or resolve to adapt to the approaching obstacles?

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Social media big winner in marketing mix