As I was reading it, I started to think about applying LTV to the methodology. When you think about making decisions based on LTV, the story becomes even more clear. All will be revealed (with a graph!) after the break.
A recent article in the New York Times got me thinking about the psychology of marketing again, and how some basic principles are used or under-used in social media marketing.
“Warning: Habits May Be Good for You” explores how an anthropologist turned to marketing experts from CPG companies like Procter & Gamble to help increase the incidence of hand-washing with soap after using the toilet in the nation of Ghana to improve the health of children. Obviously, this was an important effort and I was encouraged to see marketing practitioners as instrumental in helping achieve success in this endeavor.
As I was reading the article, it struck me that many of the techniques used are found in Robert B. Cialdini‘s classic Influence: The Psychology of Persuasion. I’d lent out my copy a few years ago and, thankfully, had to buy a new version which includes an epilogue written by Dr. Cialdini in 2007. My re-read then triggered a few thoughts on social media.
If the social media crowd can stop navel-gazing long enough to do some quick research and scientific work, boy will money be made. [More after the jump.]
What’s the value placed on a social media marketing campaign by the marketers that develop the campaign? It’s hard to tell, because one typically can’t get access to the key metrics associated with the campaign, particularly sales attributed to the effort and ROI.
I was intrigued by a new social push by Sony Ericsson for the Z750a flip phone, created by their agency, Iris. The campaign is titled “Bringing Purple Back.”
Well, neither Sony Ericsson nor Iris would give me any objectives for the campaign. Neither was any information or speculation found on unofficial Sony Ericsson blog sites about the campaign.
Being an inquisitive guy, I decided to use the crude but effective research technique of following the money to learn more.
Apparently Chrysler has re-crunched the numbers and found the financial results worth continuing making what’s turned out to be a very strong offer. This is good news for the car buyer looking for a deal, the dealers who like the floor traffic and is good for Chrysler, as far as “moving the metal” goes. (Overall, though, Chrysler is still in trouble.)
The takeaway is that Chrysler’s promotion has, once again, proven the old direct response maxim: If you want to dramatically increase your response, dramatically increase your offer.
When was the last time you looked at your offer? How might you reallocate your offer cost to create a more exciting offer that’s a true consumer benefit? photo credit: epicharmus
Guy Kawasaki, who is one of my favorite regular blog reads and speakers, is the author of The Art of the Start, which is a quick and worthwhile read for anybody thinking about starting up their own company.
One of the 10 things you should do, according to his book, is “Make Mantra.” I absolutely loved this, because it accurately describes what all truly innovative companies are doing and, more tellingly, what a lot of big companies are not doing.
I think that Papa John’s has “Made Mantra” with their focus on making it easy for the customer to order. They’ve sold over $1 billion of pizza via their online ordering tools. According to the CNN article, it’s just the start of likely dozens of new ways a Papa John’s customer can order.
Now that’s a mantra–make it easy to order.
So what are you doing to make it easy for your customer to buy more of your products? Or more often? Or more efficiently?
Guy Kawasaki talking about “Make Mantra” is below.
What’s old is new again. Is it better to hit a prospect with 3 to 5 impressions and tell them about your product or is it better to put the product in their mouth or on their skin and show them how great it is?
If you think about it, the Web 2.0 technique of giving away your entire product dates back to the days of the local shopkeeper.
Back in the day, the general store owner would give you a taste of what was in the barrel to get you to purchase the product. Now, digital products and services providers allow you to use virtually all of their services free of charge, with the hope that you’ll come back repeatedly and purchase the premium (paid) product or generate pageviews to generate advertising revenue.
Sampling’s an old marketing technique, but it’s taken hold in Web 2.0 products and, with the advent of more granular tracking tools, is becoming more popular with traditional CPG.
I’m not normally one to carry on about my experiences with fast casual dining establishments, even though we frequent them as a by-product of having two children who are connoisseurs of the category. The food quality can be variable, as can the staff attention to the customers.
But that’s all changed after Saturday’s experience at Famous Dave’s restaurant, where I had a terrific customer experience which doubled as a strong CRM effort on the part of the chain.
My wife and I had the luxury of a few minutes without the kids and, while driving by the restaurant, decided we should stop for lunch. We’d never been to the restaurant, although we’ve driven past the place every weekend for the past several years.
On entry, we were greeted by a smiling young man who welcomed us and held the door. His co-worker, equally welcoming, promptly seated us and informed us that our server would be with us shortly.
The CRM magic started when Chris came by our booth.
And sometimes I just shake my head. My apparently never-ending stream of poorly executed direct mail continues, with the latest effort being a shockingly bad example from Marriott’s Fairfield Inn and Visa. It appears to be the result of a co-op promotion, which may account for the execution; nobody at either Marriott or Visa felt they were responsible for the results of the effort, and it shows.
For the record, the family and I are fans of Fairfield Inns and signed up for Marriott’s Rewards program as the result of numerous stays at their Hazelton, PA location. The staff is always great, the rooms clean and cookies and DVD movies are always enthusiastically offered to us when we check in at 9 or 10 pm the Tuesday evening before Thanksgiving.
Now, if only those responsible for their direct response efforts could feel the same enthusiasm. Rather than rant and rave, here’s a PDF file of the quick analysis I’ve sent to Marriott’s marketing team.
For the first time in a long time I took a few minutes to run through the Valpak co-op mailing I received last week.
After a few minutes of looking at the offers, I came up with a short list of things to consider if you’re using Valpak (or other co-ops) as a marketing channel. The short list is powered by my own past experience and might stimulate you to think of some other ideas.
Before I get started, here’s a rundown of what I found inside. There was a total of 43 inserts inside the envelope (which featured, bizarrely, a promotion for the television program CSI: NY on the OE and which distracted me from the 1:50,000 possibility that there might be a check for $100 inside). I sorted the inserts into three categories:
National advertisers (19, 44% of the total). These included Netflix, DirecTV, Verizon, Omaha Steaks and others. Of those, 4 (27%) of the inserts did not use the standard 8 1/4″ x 3 1/2″ format and instead paid additional for a heavier and/or different stock insert.
Regional/franchise (8, 19% of the total). Included here were ads for the local Gold’s Gym, Kaiser Permanente and Molly Maids. Of these, only 1 (12%) of the inserts deviated from the standard insert.
Local advertisers (15, 35% of the total). These ranged from local dentists to home improvement providers to Anthony’s, a restaurant down the street–which included some coupons that might finally get me to take the family there!. Only 1 insert (7%) strayed from the Valpak standard format.
Valpak ran one house insert, promoting an offer of $350 to target 10,000 homes for new advertisers, a CPM of $35.
We can immediately see some ideas, just from this basic sort.