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.
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.
After lashing out at Verizon and Vonage a little while ago, I thought I’d move on to other topics.
But Verizon can’t help but make simple mistakes in their direct mail efforts. On Friday, I received yet another first-class mailing, this time promoting Verizon’s FiOS Internet service.
Since I’ve now been a triple-play customer for two months and paid two bills for the service, this mailing is slightly redundant. Unlike the last promotion, this one has doesn’t even include a letter signed by an identifiable person. I guess they knew this was so poorly done that nobody wanted to sign it?
Of interest is the fact that the return address for the FiOS Internet service is Annapolis MD, while the TV promotion came out of Irving, TX. This confirms my suspicion that the FiOS product is multiple business units hammered together.
Summary and takeaways
Share your internal customer lists across multiple business units and suppress against those customer files when you are undertaking a promotion.
Always suppress against your transactional/payment database. Your internal marketing databases might not be updated, due to either sloth or neglect, but the department that counts the money always knows who’s paying and who’s not.
Over the years I, and my clients have labored mightily at our marketing efforts. Hours of careful thought about our marketing objectives, followed by more hours of careful analysis of past test results. And even more analysis of our lists and target audiences, followed by hour upon hour of agonized copywriting and creative development. Lastly, double- and triple-checking test emails, lettershop insertion samples and testing our telemarketing scripts in every imaginable way.
After all that careful planning and analysis, what could possibly go wrong?
The site build is progressing well today. The CMS platform is up and stable, although page load times aren’t acceptable yet and a few things are being examined on the server side.
We’ve installed a number of plugins to give us more flexibility when adding content. One we’re experimenting with now allows easy addition of YouTube and other videos. And who would be more appropriate to test this with than the immortal David Ogilvy?
This video looks to be from the 80′s when Mr. Ogilvy was serving as the chairman of O&M in India. If you happen to know the audience this was filmed for, I’d appreciate your feedback.I’ll have more on Mr. Ogilvy and others in the future, but for now I bring you David Ogilvy in his own words, on the differences between general advertising and direct response and his advice to general advertising agencies.