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

 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.

OFFSET PRINTING:

Offset printing, or traditional litho printing, utilizes a process whereby ink is put onto a roller so that a printing plate can pick up the ink and create an image on a blanket. The stock (paper) rolls onto the blanket and the image appears on the paper. For full color printing, this process often utilizes four primary colors to build all of the other colors that we see. These colors are cyan, magenta, yellow and black. That is why you will sometimes see four-color process printing referred to as CMYK. You can also use spot colors if your job requires an exact color match (leave a comment of you want to know more about spot colors).  Logos and other corporate identity collateral tend to use spot colors as it can be seen as a differentiator. 

Offset printing is generally used for longer, static runs. By longer runs, I refer to a greater number of sheets, or pages, that need to be printed. By static, I mean that every imprint is the same.  There are many types of offset presses.  They range from small one-color presses that can handle a sheet size of 8½ x 11 to much larger web presses that can print everything from the daily newspaper to millions of copies of books. There are also a variety of specialty presses that can print envelopes, raised printing and more. When you have a print job, make sure your print service provider has the right equipment to run your job as economically and efficiently as possible.

Take-away 1: offset is a good option if you need a lot of the same document.

DIGITAL PRINTING:

Digital printing, the sector of the printing industry that is currently experiencing the most growth, was introduced in the late 80s. At that time, the only digital printing available was black and white. Today, in addition to black and white digital, there are many other options.  These include toner-based digital color, ink based digital color, and a process that we are all familiar with, inkjet technology. However, unlike the inkjet printer you might use at home, production inkjet presses can produce hundreds of pages per minute with some capable of doing thousands.

The key aspect of digital printing, as opposed to offset printing, is that in digital printing each sheet can be customized. Digital printing is more economical for shorter runs (fewer copies) because there are no plates, there is much less waste and the color is (generally) accurate on the first sheet off the press. Also, the document comes off the press dry, so turn-around times are much shorter.  Before you start sending those nasty emails, I am placing DI Presses in the offset category because they can only produce static throughput. 

As a way to save on logistic costs, many companies are now producing marketing collateral in smaller lots so that there is no inventory to track and store and no risk of obsolescence. Additional cost savings can be realized when a web-to-print solution is used, saving administrative time, proofing time and allowing many small orders to be aggregated into large orders, lowering the overall cost. Again, this is the result of digital printing’s ability to handle short run work with high quality results.

But short run work is only a small part of what digital printing can do to help your company effectively communicate (although there are a lot of printers who don’t seem to understand this). If we have customer or prospect data we can use it to create individualized, personalized, relevant printed marketing collateral that is different for each of your recipients. So while you may be selling the same product, say a pair of jeans, the copy and the images that you want to use to sell to a 22 year old female in New York City will be very different than those you want to sell to a 50 year old male in Douglas, Utah.

Digital printing allows you to take advantage of variable data printing. While I cringe saying this, in its most basic form variable data printing is analogous to a mail merge program you might use on your home computer.  Again, before the nasty emails start raining down on me, I must point out that true variable data printing is far more complex and requires experienced programming.  The mail merge reference is merely an analogy with which lots of us are familiar. The ability to print personalized, high speed, high quality, full-color collateral means digital printing can create mass marketing pieces that are unique for each recipient. This type of personalization has been shown to significantly raise response rates. And when used as part of a cross-media campaign, the same creative work can be re-purposed to be used in personalized landing pages (PURLS) and email.

TransPromo, which I might have mentioned a few times, is a sophisticated variable data print application.  This can be a color digital image on a white piece of paper or it can be an imprint on a preprinted shell.  And that is a good segue… 

Take-away 2: Digital print is good for short run and personalized variable data projects.

HYBRID PRINTING:

Hybrid printing is a combination of the best qualities of both offset and digital printing. Hybrid printing takes the cost effectiveness of offset printing for large four-color runs and combines that with the increased response rates personalization and customization make possible by adding a digital black and white or even full color, imprint. While inkjet is starting to close the gap, black and white digital printing is less expensive than color digital printing. Therefore, if you are able to create a four-color process shell, you can then utilize black and white digital print to create personalized pieces in a more cost-effective manner.

This application is great for form letters, gift appeals, personalized offers and coupons with bar codes.  This is a great application for personal URLs and even QR Codes.  This allows tracking and measuring of the results of your marketing campaign, a must for real success. 

Color gets attention, but digital color can be expensive. Offset is static, not personalized or unique to the recipient, and does not get the higher response rates marketers need. Hybrid printing solves this dilemma by using color from the offset process and the personalization from the black digital process. You get the benefit of both processes and the cost effectiveness of both processes.

Digital imprinting on offset shells is also a good way to leverage data for TransPromo solutions.  Use offset to print a large quantity of static shells with a company logo or other brand information that requires color.  You can then use your data to imprint the statement data onto the color shells.  It is a solution that has worked for decades.  Still, in my own opinion, TransPromo is even more effective with full color digital. With pricing on color digital dropping faster than President Obama’s approval ratings, your company would be wise to consider a move to full color TransPromo.  With co-marketing, any cost increase from the move to color can be offset by sharing some of the white space on your outbound documents.  If you would like more information on this, please let me know by email or just leave a comment. 

Take-away #3: Hybrid printing is good when you have a lot of full color pieces to produce, but the personalization can be done in all black.

WHICH IS RIGHT FOR YOU?

The answer to the question which process is right for you will depend on what you are trying to accomplish. Talk to your vendor and explain your goals. A good vendor will take the time to listen and help you plan the most effective and economical campaign possible.

Questions, comments, disagreements.  I would love to hear what you think.  Please leave a comment.

 One part of the law requires credit card issuers mail or deliver periodic statements at least 21 days before they are due.  That is a change from the prior law, which was 14 days.  Another part of the law that became effective August 2009 requires card issuers provide at least 45 days notice of any APR increase or other significant change in terms. 

Please notice that these laws are all focused on CUSTOMER COMMUNICATION. 

Massive Legislation - the cure for insomnia

 Come February 22, 2010, we will have to deal with laws that are completely reshaping the way we handle transactional documents.  The law imposes requirements that are likely add at least a half page to the average statement.  This is a great opportunity for everyone in the TransPromo and marketing field. 

 An opportunity to open a dialog with our customers.  An opportunity to use individual statements not only to comply with the law, but also to improve our communications with customers.