It is worth noting that this practice is not new. It has been around for decades. However, as technology has advanced, this tool has become even more economical, effective and versatile. For example, technology now allows even the smallest of businesses to capture, use, and segment data. These advances in technology provide a wide range of marketing opportunities that were not available when messaging on statements was limited to a few lines of black text on a printed document.

 Data is critical in our information age, so we will take a closer look at how advances in data technology can be used to create an effective statement marketing campaign. Databases are no longer no relegated to Fortune 500 companies. Almost every business has some type of electronic database populated with valuable customer data. This data can (and should) be used to create targeted, relevant messaging that speaks directly to the recipient of the message.  There is a local restaurant chain that I go to that presents a good example of data collection. They have a loyalty program that provides members with discounts after a certain amount is purchased. Every time I go there, I hand them my card with the check. They swipe the card and know how often I visit, which location I visit, what I order and how much I spend. They own a wealth of information about my dining habits.

 So how could they make use of that data? There are many ways, but because we are discussing statements, let us examine how the data collected by my local restaurant could be used on their loyalty club statements (by the way, this is a hypothetical, as this business does not send loyalty club statements – a big mistake in my opinion). So hypothetically, they could send me my loyalty club statement with information about specials on food similar to what I have ordered in the past (Buffalo Wings). They could send me my statement during a time that I have historically not eaten at their establishment. They could add a coupon for a higher margin item I do not typically order. All of these things have the potential to get me (and my money) into their restaurant at a time I usually do not eat there to buy food I usually do not buy. By using the information (data) I give them, they can tailor the messaging on my statement in such a way as to benefit both the business and me.

 If you think about it, there are many such opportunities for them to personalize their communications to me. I receive email updates from them frequently that could be personalized just like the statements.  They could create a referral program if I get my friends to sign up for the loyalty club. That would give them even more data to use in their customer communications.

 With data, which is now easier to capture and use, messaging can be personalized and specific behavior encouraged.  That is just one example of how statement marketing can impact a business’ bottom line. Can you think of any others? Please share your ideas in the comment section.

 If you are looking to take your business’ marketing to the next level, give us a call. Perhaps we can help make the process easier and start putting that additional revenue into your cash register even faster.

     So where do we get the data we need to personalize our communications with our customers?   Well, there are a lot of places we can get data.  Some of it is great and helps us to better serve our customers, and other data leads to wasteful spending and spam.  The real question is how do we get GOOD data?  How do we get data that helps us understand our customers and their needs?

     In the previous part of this series, we discussed using data we already have.  We (should) have data about every customer.  Aside from name, address and email, we should also know about their buying habits.  What do they order? How often do they order?  Within what time frame do they need their order filled?  The basic customer data that is collected will differ with every business.  A national Donut franchise will have very different data than a local law firm.  How you compile and use that data will also differ. 

     For the purposes of this article, let’s assume we are starting at square one.  We are looking to acquire customers and data regarding potential customers.  How do we do it?  There is no single way, or even a best way, but there are ways.  Here is one suggestion.  For this scenario, let’s assume that you have no data and are starting a data capturing campaign.  (In future posts we will look at alternate approaches, but for now we are casting a wide net).

     STEP 1:  GET A LIST– First look at a set of very basic demographic data into which your customers, or potential customers, fit.  Of course, you did your market research and have this information available, right?  The target audience for almost every business will differ.  Characteristics like geography, age, gender and countless others will help you pinpoint the right audience, deliver the right message and obtain the best data  for your specific campaign.  Doing your research, and knowing who you plan to target is a key to success.  We will assume you have done your homework and know the data about the demographic you want to target.  With this information, you or your marking services provider can obtain a list of prospects that meets those needs.  There are many, many list brokers out there, and some are better than others.  Some due diligence here will serve you well.  Once you have purchased the list, you will use it to create and send your message, whether by printed material, email or if you want to be even more effective, a combination of both. 

     STEP 2:  CREATE A COMPELLING, PERSONALIZED MESSAGE – Now that you have your data in the form of  a thorough list of your target audience, you will want to personalize your offering to them.  Remember, every person in your audience is unique.  Treat them that way.  Whether you are using ink on paper, email or both to communicate with your audience, personalized message get read more often and are thus, more effective.   Use their name in your message.  Use variable graphics and variable data to personalize the message to each recipient.  Add a personal URL or a QR Code to bring people to their own page on your website.  Your goal here is to engage your potential customer.  Simply stated, personalization has been shown to improve your ROI. 

     STEP 3:  HAVE AN APPEALING CALL TO ACTION – Now that you targeted your audience and delivered to them a timely and relevant personalized message, you want to get them to do something.  Perhaps you would like them to supply an email address, register for a webinar or complete a survey, but you definitely want them to opt-in to future communications from you.  To achieve this you must grab your reader’s attention immediately and let them know the benefits of what you are offering.  Use strong headings like:  John, the information in this message can help your company wallop the competition.  Or:  Don’t miss your chance to be among the first to receive an industry-changing information.  While the call to action must be compelling, it must also be true or you will lose your credibility. 

     STEP 4:  CAPTURE AND USE THE DATA – Make it easy for the reader to provide the data.  And make it easy for you to maintain and use that data.  There is a lot of software that can automate this.  Many hosting companies will provide this service to you as part of your hosting package.  However, data security and privacy are important to keep your customer’s trust and to comply with an ever growing body of law (check back here next week for a post on that very subject). Still, after the effort to obtain the data, you want to use it to better know your customers and of course, use in subsequent campaigns.  Analyzing your data is another great way to use the information you captured.  Was your research correct?  Were your respondents who you thought they would be?  While the data you just obtained is a great start for ongoing marketing campaigns, it also can help you target even more customers interested in your products and services.  However, that is a subject for another post.

     None of this has to be rocket science, but it does require time and attention.  And the more complex the campaign, the more time and effort it will take to execute properly.  If you too are busy running a company or department, you can have the bulk of this work done by a marketing service provider.  They can help with everything from obtaining to analyzing your current customer data, procuring a targeted prospect list, crafting and designing your personalized messages and call to action and analyzing the new data for even more effective future campaigns.   

THE TAKE_AWAY:

STEP 1:  GET A CURRENT, TARGETED LIST

STEP 2:  CREATE A COMPELLING, PERSONALIZED MESSAGE

STEP 3:  HAVE AN APPEALING CALL TO ACTION

STEP 4:  CAPTURE, ANALYZE AND USE THE DATA    

     If you have any thoughts about this topic, please share them  Your input is alway welcome. Let’s share experiences.  All of us together are smarter than any one of us alone. 

Until Next Time, John

Let’s take a look at some different types of data that you probably already have and can use to enhance your communication efforts today. There are many ways to capture data, including buying lists that match your desired customer demographic (more on that in the next post).  However, buying a list is not always financially feasible, nor is it always necessary.  You could be sitting on a gold mine of data that you already own free and clear. Data you can use immediately to further your targeted, personalized communication campaigns.  In this article, we will look at two types of data you probably possess in one form or another right now.

TRANSACTIONAL DATA:  This is simply the data that you obtain as a result of doing business with a customer.  The data each business has will vary depending on the nature of the business.  Still, every business will have some kind of transactional data they can start using today.  It could be as simple as a list of names and addresses where you sent an invoice.  It could be a list of email address you have on record as a result of a series ebay transactions.  It could be a massive and highly complex, cross-referenced database like the one Amazon.com uses.  The point is that the regular, daily transactions of your business, you can find a wealth of information that will help you pinpoint your target audience and personalize your messaging to them.  Of course, the better the data, the more option you have with how to use that information.  By maintaining good transactional data, you will know who is buying from you, when they are buying, what they are buying and how they are buying (online, retail, etc…).  That is really valuable stuff.  You can use that information to identify new leads, drive new sales and improve customer loyalty, satisfaction and retention.  What if you have not had any transactions and thus have no transitional data?  Don’t worry, we have a solution for that too.  Moreover, it is simple and can be acted on immediately.

EXISTING PROSPECT DATA:  Unless you are a start-up (and perhaps even then), you probably have a sizable list of prospects – even if you never refer to it that way.  The form of this data could be anything from a detailed CRM database with information about when you met or acquired the prospect, how you met them, their business needs, purchasing time frame, etc…  Such systems can remind you where you meet the person (was it at a conference or did they sign up for your electronic newsletter?), what efforts have you made to market to them (are they receiving your email newsletter?) and what has the result of those efforts been?  Again, the more detail you have the better.  However, your prospect list could also be a stack of business cards that you have collected over the years.  It could be your Linkedin network or the membership roster of your local Chamber of Commerce.  Just remember that the more up-to-date your data, the more effective your communications will be.  Timely data allows you to create relevant messaging and the more relevant your messaging, the better your results.  Whatever your prospect data looks like, make use of it to find new leads, heat up cold leads and close more business.

THE TAKE-AWAY: Every organization, whether a one-person company or a business giant has some type of existing data they can use to help make their marketing and communication efforts more effective.  Marketing that is more effective means more goods sold or services rendered, and hopefully, an even better bottom line.  Remember, the better job you do maintaining your data, the more effective it will be in your communication efforts.

In the next article, the last in our three part series, we will look at what to with that data once you have it.

What data do you have that you can use today to make your communications even more effective?  Let’s share experiences.  All of us together are smarter than any one of us alone.

Until Next Time, John

Welcome to the first part in our three part series about data and its use in effective, personalized marketing.

I talk a lot (what did you expect, I’m a lawyer). But let me be more contextual: I talk a lot about marketing and communications strategy. There is a lot that goes into a comprehensive communication strategy and all of it important. Yet in reality, success in our marketing and communication efforts comes down to one item that is far more critical than any other. Data.

In our customer-centric, interactive universe, it is just a simple fact that in order to communicate with customers (or any other audience) effectively, you need good data. Data, and the information gleaned from thoroughly analyzing data are the Holy Grail of targeted marketing. It allows you to construct your message in such a way that it is more relevant to the recipient and thus, more likely to be read and acted upon. If your message is one of a hundred or so received by your target, it had better be relevant to them or it will simply not get a second look. And you need to know more than just name and address, regardless of whether the message is delivered by direct mail, email, TransPromo communications, Morse Code or smoke signals. The days of sending out mail to “Addressee” or “Current Resident” and expecting it to end up anywhere but the recycle bin are long gone. However, targeted communications full of rich, relevant graphics, timely information and personalized messaging will almost always get a second look. And that gets you more business.

THE TAKE-AWAY: You must know that your audience expects you to know them, and if you want to communicate with them, you had better get to know them. Personalization is an effective strategy for your business and your customers and prospects will appreciate the effort.

I hope that you are now at least convinced that you need data and you need to target your audience and personalize their experience. Communicating with your customers and prospects on a one-to-one basis will help build relationships, enhance your brand and make your messages stand out from the many others that are seen every day. But now we face another set of questions: where is all this data supposed to come from? In what form should the data be? How do I use my data to create relevant, personal messages for my target audience? And most importantly, what is the payback for this effort?

There are answers to all of these questions and the good news is that it does not have to be a costly or time-consuming process. However, you will have to wait for the next post where the subject of data acquisition will be discussed. In the meantime, please leave your comments about any data issues you have experienced or any personalized communications you found to be effective. Let’s share experiences. All of us together are smarter than any one of us alone.

Until Next Time, John

 I bring this up at this time of year because two of the most important marketing ideas, and life lessons, I learned as a kid was from my Grandfather.   He was an attorney in Boston during the days when attorneys did not advertise.  Zero “have you been in an accident?’ commercials.  No “have you taken XYZ medication and ended up with tongue warts?” commercials.  Back then, so I have been told, a lawyer would have been shunned by the entire Bar just for placing a yellow pages ad.  As an attorney, I understand the constraints that tie the hands of those in the legal profession looking to market themselves.  Even today it can be a challenge to promote a law firm’s services and stay in compliance with the Rules of Professional Conduct.  It was even more difficult back in the days my Grandfather was practicing.  But he did grow his practice and he did connect with people despite these limitations.  The way he marketed himself now seems so easy and so obvious.  More importantly, it was so effective. 

 He knew that the only way he was going to get clients was by word of mouth.  He had his reputation and that was all.  No PR firms or Image Consultants to help people communicate back then.  As a Lawyer you had your skill and knowledge to help your reputation spread.  I was always amazed at how well known my Grandfather was.  And here, in this article, I am going to give away the secret he taught me FOR FREE.  The secret to his success, never before revealed (except every other St. Patrick’s Day when I write an article like this), was:  be nice to people. 

 He knew that his success was tied to his ability to connect with people and have them remember him.  One way he did that was by being genuinely interested in everybody he met throughout his day.  Whether a Judge, opposing counsel, the clerks or the doormen, he not only treated them with equal respect, but was genuinely interested in their lives.  He took the time to find out about the doorman’s son’s 8^th grade science project as well as the tough case the Judge just finished.  People were people.  He gave love and respect and in return, received love and respect. 

 Take Away:  show everyone you come into contact with respect and take an interest in their lives, and people will not only respect you, they will remember you.

My Grandfather’s 15 minutes of fame came every year about this time.  St. Patrick’s Day.  For those of you living outside of the Boston area, you might not appreciate what a HUGE deal St. Patrick’s Day is here.  The City of Boston is literally closed while one of the largest St. Patrick’s Day Parades winds itself through the (always confusing, frequently one-way) streets of Boston.  Well, back in the day before email and Twitter, my Grandfather discovered a fun and effective way to capitalize on the St. Patrick’s Day phenomenon.  True to form, he did so by giving.  But the gift was unique.  Green bagels.   

Now, remember that I am talking about the 50’s and 60’s here.  Not only were bagels relatively unknown, green ones were unheard of.  In fact, it was such a novelty that every year, the Boston newspapers ran stories of his green gift giving.  It was a marketing campaign with great PR value and one that stuck in people’s minds long after the last green morsel was devoured. 

Take Away:  marketing does not have to be costly or complex.  It just needs to convey the right message to the right people at the right time in a memorable way.

What unique marketing tools have you seen used?  Please share them.   After all, no one of us is as smart as all of us!

And Happy St. Patrick’s Day.  (If you’re looking for me, I’ll be at the Black Rose raising a pint and a green bagel in gratitude to my wise Grandfather.)

 So I figured what better to do than share them you.  Be warned, there is no order to these thoughts.  No links as they are derived from the lost and ancient practice of writing notes on paper with a pencil.   With that disclaimer, let’s dive in.

 DATA ISSUES

 One of the largest impediments to executing an effective personalized marketing campaign is a lack of good data.  There is no lack of data, just a lack of organization and consistency in the data.  There are so many legacy systems it is impossible to identify one solution to fit all data.  There is also the issue of integration, which is taking the legacy problem and multiplying it by a factor of X.  X in this case is the number of autonomous systems running within one organization.  So there is a CRM system tracking customer data, an accounting system tracking billing, perhaps there is a production system tracking live orders and a pile of prospect’s business cards that, were they not scattered around an office, would reach the moon.  So that is 4 totally separate systems, and I did not include web analytics, social media monitoring and the like.  Thus the formula reads as follows:

 X = A² + M

As stated above X represents the number of legacy systems to be integrated, A equals the number of aspirin I need after working on one of these projects and M represents the Martini I use to wash down the aspirin. 

 LEGAL REVIEW

 I am a lawyer and I have spent time working in large firms.  I hated it, but I did it.  Briefly.  That said, I can understand that certain documents need to be reviewed before being published.  Liability and compliance issues are real and do need to be addressed.  But how #$%* long does it take to review the correction of a typo.  I have seen (and I am not exaggerating) a one word correction on what was supposed to have been the final proof take three days to get approved by legal.  Of course, that did not change the production deadline.

 That is another benefit of TransPromo and other automated document production systems.  Templates can be approved and the data related changes do not need to go through legal review.    Of course there will be exceptions, but templatizing (I may have just made up that word) communications can allow for faster deployment of personalized communications.  I won’t even go into some of the nightmares with medical review.  I will just say that Proctologists can be a pain in the…

 MISSED OPPORTUNITIES

 It is truly amazing what technology has done to communications.  Automation is the rule.  Speed is critical.  And the number of outbound documents delivered in a single day, both paper and electronic, is mind boggling.  And on every one of those documents is an opportunity to build your brand, provide information to customers, and increase sales. 

 Take a simple online order.  A customer orders 10 widgets from Widgets-R-Us.  They typically get an email confirmation of the order.  It is usually black and white, text based and contains only information related to that order.  Then there is the shipping notification.  This is also brief, containing a tracking number and little else.  Finally you get your widgets and there is a packing slip and invoice.  If Widgets-R-Us fails to use these communication points to cross-sell, up-sell and inform, they are wasting opportunities to grow sales and increase customer loyalty.  The sad thing is that sending a personalized, relevant message with the document would not add much to the cost. 

 Along those lines, general email can also contain messaging that could improve sales and customer relations.  A link to a product that the customer might need would help both the company and the customer, but such messaging is the exception (think about what Amazon.com does.  Every click on their site is analyzed and used in every communication.  Is it any wonder they are the 1,000-pound gorilla of online selling? 

 TO SUM UP

 There is really no good way to end this brain dump of a post, so I will just say thank you for indulging my ranting.  If you have any thoughts on these topics, please share them by leaving a comment.  It’s only fair that I read your rants as well.

All of this back and forth can cause compliance issues for businesses and uncertainty for customers.  As we know, uncertainty can cause stress, fear and anxiety.  To make matters worse, that uncertainty hinders any economic recovery.  Good, bad or indifferent, the United States economy needs confidence and credit, to grow.  The smaller the supply of either, the less opportunity there is for economic growth.  If I lose my credit card rewards program, I might not have the confidence in my financial ability to take that trip I was planning.  After all, I only budgeted for hotel and meals, but planned to use reward miles for the flight.  Because of the uncertainty caused by my credit card situation, I might call off the whole trip.  That means there is less money being pumped into the economy and the seemingly perpetual downward spiral continues.  If customers are concerned that they might have to pay higher annual fees to keep their credit cards (because banks desperately need to recover lost revenue), that is money customers will not spend.  And the spiral continues. Notice I said if “customers are concerned” that the bank is raising fees they will not spend.  The bank might not ever actually raise the fees, but the concern is enough to change spending behavior.  Therefore, the companies that want to emerge from this recession as market leaders need to factor human psychology into their marketing and communication strategy more than ever before.

How does this apply to TransPromo and customer communications?  (Yes, I do have a point.  Did you doubt me?)  Note that I referenced the fear and uncertainty as factors potentially hindering economic growth.  This has always been an issue in Keynesian economics.  Today, however, this uncertainty is far more acute as people cope with their belief  that it was the banking system and government, the very entities charged with ensuring the smooth operation of the economy, that let them down.  Today people fear for their future and their children’s future, they are uncertain about what, if anything , the government can, or should, do to help turn around the economy.  Confusion reins when it comes to health care, taxes, environmental protection, deficits and war.   It is no wonder that there has been an increase in people seeking assistance from mental health professionals to cope with lost jobs, lost homes, and lost self-esteem.  Intelligent credit card issuers must seize the opportunity to communicate with their customers consistently, honestly, personally and in a manner that builds trust and confidence.  In their book, Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism, George A. Akerlof and Robert J. Shiller (here is the NY Times Book Review), the authors argue that like the Great Depression in 1929, the current economic crisis is the result of human psychology more than monetary policy.

So again, what the heck does this have to do with TransPromo?  I put it to you that smart organizations, financial institutions as well as every other company that wants customers, need to start communicating more effectively with their customers to calm them down and to keep or gain their trust.  Further, sending 12 page, static “modifications” to card holder agreements is not going to do the trick.  Sure, there were strategic reasons banks did this.  But those reasons cause further mistrust and did not help explain, in plain English, what changes are going to impact THAT PARTICULAR CUSTOMER.   That is where TransPromo comes in (you thought I would never get there, didn’t you?).  Personalized communications, with messages that help to alleviate fear and anxiety, will go a long way toward building that trust.  Earning that customer confidence will make your company the trusted one people want to deal with when things get better.  And things will get better.

Now is the time to build an integrated communication strategy.  Now is the time to plan your goals, plan how you will reach those goals, plan how to measure your progress toward those goals and plan how to improve your results. TransPromo is a means to accomplish all of this in a way that is almost guaranteed to be seen by the customer.  So put clear, personalized information on your transactional documents.  Don’t just do what is legally required and nothing more.  Go the extra mile and provide as much information as the customer can use.  Knowledge is power.  When people feel they have more power, they are more confident.  When customers and prospects feel more confident, and your company is the source of that positive emotion (even if it is subconscious), they will trust your company over your competition.  Therefore, a laser-like focus on earning your customer’s trust must be a priority for every person in your organization.

All of the new regulations and all of the changes to those regulations present an opportunity to differentiate your company, to separate your company from pack.  TransPromo is but one tool to accomplish this, but it is a powerful tool.  You will surely need other tools to complete a comprehensive strategic communication plan, and we will address those other tools in future articles.  The take-away here is that in these times of uncertainty, developing a communication strategy that builds trust and confidence will earn you rewards that dwarf the investment.

As always, if you have any questions, please contact us.  Our mission at White Space is to help our customers build communication strategies that foster trust and create good will.  If you have any thoughts or experiences you would be willing to share, please leave a comment.  We are all smarter together than any of us are alone.

It's the strategy that matters, not the name.

When I am discussing overall communication strategies with customers, the subject of “social media” inevitably comes up.  When this happens, I am occasionally met with blank stares.  Sometimes I am told that this social media thing is just a fad.  One cannot really blame people who do not focus on this stuff for a living for having a bit of a jaded attitude toward “social media” in general.  The topic is huge, not well defined and in a constant state of change.  It was not long ago Twitter was used almost exclusively to update people about what piece of furniture your derrière was occupying at the time.  What had been called “web 2.0” is now called “social media” and who knows what it will be called tomorrow.  For that matter, who cares?  What is important to understand is that interactive communication over the Internet just one of many tools that allow businesses to hear directly from their customers and provide those same customers with timely, relevant information.  UPDATED 2-15-2010 @ 6:30 PM EST.  SEE BELOW. 

That said, I still see a good deal of reluctance to place adequate resources toward brand monitoring, customer communication and a host of other opportunities evolving technology now makes relatively simple.  There are many tools available to help businesses more effectively engage their customers and address issues before they get out of control.  These tools can range from free to expensive, from simple to complex, from specific to general. Heck, a simple Twitter or Google search can let you know what people are saying about your company in seconds.

What many executives, especially those in older, established industries do not seem to understand is that social media, like any other communication platform, requires a strategy.  There is not a business, at least a successful business, that would just start placing random newspaper, television or radio ads.  Why should this medium be viewed differently?  In order to succeed in any communication endeavor, a successful business will make sure they have a few things in place:

1. Outcomes should be determined before any program starts.
2. Detailed methodology with measurable metrics should be implemented.
3. Responsible team members should know what is expected of them and they should provide feedback before, during and after a particular campaign.

Two things are perfectly clear. First, there is no magic to “social media” and second, there is no avoiding it.  So if you have to get in the game, get in the game to win.  Get in the game with a plan.

Effective Strategy Leads to Safe Landings

TIMELY UPDATE I COULD NOT HAVE PLANNED IF I TRIED:  Speaking of effective use of customer communications, check out how Southwest Airlines handled what could have been a sizable (pun very much intended) public relations problem.  Kevin Smith, a movie director, was removed from a Southwest Air flight because he could not, according to the airline, safely fit into just one seat.  Mr. Smith, clearly unhappy with this weighty (sorry, I can’t help myself) determination proceeded to let his Twitter followers know his opinion of the airline.  News reports indicate that his posts, replete with expletives, made it clear he was not happy with Southwest.

Having a thorough customer engagement strategy and allocating sufficient resources to social media monitoring paid off for Southwest.  Their timely monitoring of what customers were saying about them combined with timely, honest engagement allowed the airline to get out in front of the story.  The airline issued an immediate apology and detailed explanation.  While the story still made the news, Southwest’s strategic allocation of communication resources allowed them to control the story’s narrative and limit the potential damage to their brand.

What really happened?  Who knows?  That is not the point here.  The point is that a strategic approach to social media paid hefty (last one, I promise) dividends for Southwest.   However, if you want to see the entire drama playing out in excruciating 140-character detail, check out @ThatKevinSmith or @SouthwestAir on twitter.com.