Using Data, Technology & USPS to Rev Mail Response

Recent research provides compelling reasons to include direct mail in marketing plans--and also highlights opportunities to further pump response and ROI. Direct mail response rates actually jumped in 2016 per the Data & Marketing Association (DMA) 2017 "Response Rate Report," hitting 5.3% for house lists and 2.9% for prospect lists, the highest levels the DMA has tracked since 2003. Also consider last year's InfoTrends' direct mail statistics: 66% of direct mail is opened; 62% of consumers who responded to direct mail made a purchase within three months; and 56% of consumers who responded to direct mail went online or visited the physical store. But direct mail is expensive, and response is no slam dunk, so marketers must plan carefully to leverage positive trends. Luckily, 2017 offers data and print technology options, and U.S Postal Service support, to aid in direct mail success. We suggest committing to six key steps: First, start with data quality. That requires updating, cleaning and aggregating the customer database. Look for data gaps and append important targeting factors, such as contact info, demographics or firm-ographics. Second, analyze the data to identify and profile your best customers and their attributes, preferences and transactional history so that you can find and target lookalikes in acquisition, as well as tailor more profitable retention. Third, use your data to create effective targeting and personalization with tactics such as segmentation, variable data printing and timely triggered mail. Segment the audience into target mail groups, based on factors ranging from age and gender to purchase history. Use variable data printing technology for hyper-targeted messaging with multiple variable-content fields. You also can automate digital-activity mail triggers so that, for example, a relevant postcard is sent within 48 hours of an online purchase. Fourth, use print technology's PURLs or QR codes to leverage multi-channel investment, boost response ease, and create a seamless brand experience by linking physical mail to website, mobile and social. Fifth, test innovative creative that will stand out in the mailbox. Summer Gould, president of Eye/Comm, recently offered some suggestions in Forbes magazine, including Augmented Reality, dimensional mail, "endless folds" pieces, and video mailers. Finally, take advantage of the U.S. Postal Service's postage discounts and incentives! In 2017, programs include Earned Value; Color Transpromo; Emerging & Advanced Technology; Tactile, Sensory & Interactive Engagement; Direct Mail Starter; and Mobile Shopping. For details: https://www.usps.com/business/promotions-incentives.htm

Data-Driven Marketing Power Drained by Basic Mistakes

Data-driven strategy is an ideal that many marketers, especially in the B2B world, have not fully mastered. For example, a 2015 survey of marketing professionals by Ascend2 and ZoomInfo found that only 33% of respondents called their data-driven marketing strategy “very successful.” The good news is that just 10% said their data strategy was somewhat or very unsuccessful. Still that leaves a lot of room for improvement! What's preventing marketers from maximizing data success? In a recent martechadvisor.com post, Hila Nir, vice president of marketing and product at ZoomInfo, cited the three most common mistakes sapping data-driven marketing potential, with a focus on business-to-business marketing. No. 1 is wastefully "throwing the net too wide" and hauling in confusion. While there is a mass of multi-channel data you can gather and analyze, only some data and patterns are relevant to marketing success. So where do you start? Nir advises going to the foundation of the customer relationship--the actual customer contact--and building from there. The No. 2 error is failing to frequently refresh customer and prospect data. Data value erodes over time as basics such as mailing address, job title, phone number and e-mail change. Customer Relationship Management (CRM) software that stores lots of outdated legacy data can make the problem worse. And maintaining data quality is a big job that only grows with the size of the database. That's why 79% of the most successful data-driven marketers in the survey said they outsourced some portion of data management. Finally, mistake No. 3 is simply failing to take full advantage of customer and prospect data to improve cost-effectiveness and ROI. Trying to find a path through the data weeds to ideal customer targeting can certainly be daunting and strain internal resources--which is also why many successful B2B marketing efforts turn to consultants for database analysis. Needless to say, DBM Designs is among the data service partners who stand ready to assist! For the full article, go to http://www.martechadvisor.com/articles/audience-market-data/3-mistakes-that-kill-any-datadriven-marketing-strategy/

Creating Loyalty: Using Retail's Most Valuable Data

Growing a loyal customer base is the holy grail of business, especially retail. A recent MarketingProfs infographic illustrates why: Existing retail customers spend 67% more than new customers, and increasing customer retention rates by 5% increases profits by up to 95%. One solution is a great loyalty program. Unfortunately, there is a disconnect between consumers (73% say programs should show the business's loyalty) and marketing execs (66% seek consumer loyalty, read dollars), which is why 97% of loyalty programs are about transaction rewards, and 77% of transaction-based programs fail in the first two years. The bottom line is that retailers need to better profile and segment loyal customers and then develop programs around their needs, not just their transactions--and that means improved data gathering and analytics. A Forbes magazine article by Bryan Pearson, president of LoyaltyOne, highlights nine loyalty trends for 2016 that we think can help refocus data efforts, especially since loyalty program engagement is getting tougher, with the average American household enrolling in 29 loyalty programs but active in only 12. Standard transaction-based points and discounts aren't going to cut through a crowded field to woo loyalty, so watch for a 2016 shift toward using data insights to offer high-value experiences, such as special events or early VIP access to sales, per Pearson. Plus, he notes that even transaction-based loyalty programs are changing shape; it's not just about cards and memberships now that there are apps to gather data and deliver personalized offers, including mobile one-to-one in-store specials (underscoring the need for integrated, multichannel data strategy). Indeed, retailers who truly maximize the value of loyalty data in 2016 will be those who use its insights across the business, not just in a retention silo, to align pricing, promotions and merchandise assortments to better address consumer needs, suggests Pearson. And he adds another way retailers can leverage data investment: Data generated by loyalty programs is a valuable product in itself, as evidenced by The Kroger Co.'s 2014 sale of $100 million in data to product suppliers. For the whole article: http://www.forbes.com/sites/bryanpearson/2016/01/04/9-things-you-dont-know-about-retail-loyalty-programs-in-2016/#3cafb0d94c05

Want to Rev 2016? Commit to Data-Driven Marketing

Whether it's the latest digital marketing trend or traditional direct mail, bottom line success depends on smart use of targeted customer and prospect data. So for all those seeking growth and profit in 2016, we wanted to pass along five great data-driven marketing goals proposed by database marketing veteran Mike Ferranti, founder and CEO of Endai Worldwide, in a recent Target Marketing magazine post. Ferranti starts by urging investment in a scalable prospect database program, which requires mating transactional data about your best customers with other data about them (demographic, psychographic, behavioral) to find the most predictive factors for targeting prospects who will respond and convert into more good customers. His No. 2 suggestion is identifying the gold customers in your database for new loyalty programs to "retain and delight"--and that means going beyond personalized e-mail and a nominal discount now and then. A true investment in VIP customers pays big dividends. A third idea for data-driven growth is to use your analytics-optimized database to identify customer purchase patterns for targeting by next likely customer purchase (before competitors snatch a sale). Similarly, the database can be modeled for targeting by next likely product or segment purchase, timing to close gaps otherwise filled by competitors or lower-priced buys. Ferranti's fifth suggestion is aligned with all of the above: improved segmentation that structures for queries and segmented targeting to optimize sales from both existing customers and acquisition of new customers. Are these easy goals? Heck, no, but they pay off in terms of profit and sales growth--and we are ready to help any clients who want to get started. For more discussion, see the full post at
http://www.targetmarketingmag.com/post/5-data-driven-marketing-catalysts-2016-growth/

Survey Cites Obstacles to Data-Driven Marketing Success

Despite technology advances and the bounty of "big data," data quality remains the biggest challenge for data-driven direct marketing. Consider MarketingProfs' report on a new Ascend2 global survey of marketing, sales and business professionals. In terms of the most important goals of data-driven marketing strategy, personalizing the customer experience led the field (60%), followed by measuring data-driven ROI (51%) and targeting individual market segments (50%). Then when it came to the biggest obstacles to success, companies put front-end data issues ahead of back-end analytics by a wide margin. Improving data quality was ranked as the No. 1 challenge to data-driven success (59%), followed by integrating data across platforms (51%), raising the level of data analytical skills (38%) and measuring data-driven marketing ROI (37%). In fact, only 16% of respondents rated the quality of their marketing data as "very good," compared with the 27% who rated data quality as "somewhat poor" to "very poor." The majority (57%) called their data "somewhat good," which is just not good enough for the most cost-effective marketing results! For more from the survey, read http://www.marketingprofs.com/charts/2015/28904/data-driven-marketing-top-objectives-and-challenges

Fundraising Success Relies on Good Data Measurement

In providing data services for many nonprofit fundraising efforts, either directly or via their list brokers and agencies, we can vouch for the critical importance of good data measurement and analytics. A recent business2community.com post by William Comcowich, CMO of CyberAlert media measurement service, addressed that key nonprofit challenge. He began by citing six tips for improved nonprofit data measurement courtesy of Katie Paine, measurement expert and CEO of Paine Publishing LLC: Clarifying the mission and the role each activity plays in support; measuring results from all stakeholders (volunteers, sponsors, employees, and the people served as well as donors); selecting at least three specific, quantifiable and time-limited metrics for analyzing communications channels, including direct mail, e-mail and social media; gaining across-the-board leadership support of measurement; taking advantage of existing data and data gathering across departments; and analysis of measured results to improve and repeat good performance. Comcowich also stressed the need to focus on donor preference data. Based on measurable donor preferences, fundraisers can improve response with tactics such as targeting appeals and communications by age to leverage generational differences; adjusting communications frequency; and segmenting for channel and content preference to boost engagement. For the complete article, read http://www.business2community.com/non-profit-marketing/analytics-measurement-can-improve-marketing-fundraising-nonprofits-01362512