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SmartTalk E-Newsletter Articles - January 2008

Time to Test a PURL?
Variable Coupon Gets Twice the Attention
Jumping on the Brandwagon
Direct Mail is Still DM Champion

The MDI Group Home

Time to Test a PURL?
By Karen Riley

How would you like to launch a new acquisition campaign for your next subscription effort…and measure its success within hours?

Or what about creating a new lead-generation campaign and getting hundreds – if not thousands – of leads within days?

And what if this same campaign not only doubled – or even tripled – your original list count, but also self-corrected your list…at virtually no cost to you?

Welcome to the PURL – a dynamic marketing solution that uses highly-personalized direct mail to entice your prospect or customer to visit a personalized URL microsite created exclusively for them. Although opinions vary on how long PURLs will be a driving force in direct marketing, there’s no disputing that PURLs are now becoming increasingly popular for lead-generation efforts, sweepstakes, marketing surveys, driving traffic to retail, and other applications.

One of the beauties of a PURL campaign is its curiosity factor. It offers prospects something quite different, even fascinating to respond to…a website personalized with their name. As direct marketers, we know that personalization lifts response, and a PURL campaign takes that knowledge and leverages it against the interactive potential of the Internet. Industry figures reveal that the result can have dramatic effects on both response and conversion.

In either a BTB or BTC environment, a PURL campaign can begin with highly-personalized direct mail that speaks easily and quickly to all ages and interests. Once your target audience has logged onto their personalized URL, the marketing possibilities are as endless as your database. You can customize the content of your PURL landing pages according to your prospect’s interests, gender, purchase frequency, and more, thereby delivering a very targeted, relevant message. You can further tighten your message by utilizing “dynamic formatting,” text, images, and even video that relates to the demographic and lifestyle of your target audience.

The only real limit to the use of a PURL is your imagination…

• Want to capture email addresses, marketing data, and drive prospects to retail? Use a PURL to offer a sweepstakes, quickly survey purchasing behavior, and close with a redirect to your home page.

• Looking for new subscribers for a magazine that appeals to both males and females? Customize the graphics – or imbedded video – to appeal to each gender.

• Want to drive previous car buyers back into your dealership? Offer them an added personal discount beyond the standard rebate, accessible only via their PURL.

• Looking for potential homebuyers? If your list has estimated income, display the graphics in the landing pages with homes in their price range.

As robust as the user experience is, the marketers’ experience is equally engaging. With custom reporting, you get feedback on your prospect’s response impulses, enabling you to engage in more targeted mailings in the future. Once your prospect enters into the PURL, you know when they were there, how often they visited, and whether they shared the PURL – regardless of whether they choose to respond to your offer or request for information.

If they do respond, the PURL captures the data and offers numerous reporting options: immediate alerts to a sales team; immediate bulk or one-offs to fulfillment; or any part of a chain in a trigger-point, multi-channel effort.

However, if your prospects don’t complete the response cycle, you’re able to see what part of your message they wanted to see or read more than once, or what part they shared. To respect online confidentiality, you can’t tell whom they shared the data with, but your list will self-populate, and with the proper appeal in your creative, you have an opportunity to easily capture this new-user data. Just as important, you also get to see where your message was lost because the reporting can tell you exactly how far your prospects drilled down into your offer and response structure.

When the MDI Group tested a PURL BTB lead generation campaign, it yielded a 9% gross response. Considering that our offer was very simple (more information about a proprietary strategy development process we use called Smart Response™) we were pleased with the results. Other sources that are willing to hint at PURL results state the following:

• Once the prospect has completed the cycle of initial response, engagement with your offer, and submission of required data, a PURL appears to qualify respondents very effectively and can thereby help deliver a positive ROI.

• As a data-gathering tool to capture email addresses and perform simple research tasks, a PURL campaign is proving to be an effective marketing tool. Once you retrieve respondent information, you can target your prospects with tailored offers for virtually any product or service.

• A unique security code attached to each piece of direct mail tracks visits, and also helps ensure the highest level of prospect satisfaction by directing respondents to the appropriate information on the microsite.

The PURL. It’s powerful, it’s getting popular, and it might be right for you.

Sample PURL

Karen Riley is President of The MDI Group, Inc. — a direct-response agency with experience in strategy, creative development, and execution. She can be reached at 914-402-7100, or at kriley@themdigroup.com

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Variable Coupon Gets Twice the Attention

West Marine Inc., the nation’s largest specialty retailer of boating supplies and apparel, wanted to boost Christmas sales. The company was intrigued by the concept of using variable data to customize direct mail messages, and wanted to test its effectiveness compared to generic messaging.

A postcard was created that would accommodate both customized and generic messages and graphics. For the variable version, the recipient’s name was spelled out in the sand while the generic version simply said S.O.S. Both versions offered $20 off any purchase of $100 or more when customers shopped between December 16th and December 24th. A secondary offer was the chance to win one of three handheld GPS units. The variable mailers also incorporated a point-to-point map inside the GPS image directing recipients from their home address to the nearest West Marine retail location.

60,000 postcards were mailed to existing customers. Half received customized mailers, the remaining half a generic version. A UPC code, tied to West Marine’s point-of-sale system, allowed the company to track sales. Result: the variable version received almost double the response of the generic version.

Source: Condensed from 2007 Deliver magazine case study.

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Jumping on the Brandwagon

Now embraced by some of the most upscale brands, insert-media pieces are suddenly enjoying renewed popularity. Inserts have gotten a boost in recent years from companies like 1-800-FLOWERS.com, which often allows its marketing materials to ride along with materials from Omaha Steaks, the gourmet foods distributor, and premium coffee maker Gevalia. “These are not down-market companies, and you’re not reaching a down-market consumer,” says Jill EastmanVidal, director of third-party marketing.

So why has the approach become so attractive again, even to high-end brands? Simple, says Vidal: “It’s affordable.” Insert campaigns typically carry about one-third to one-fifth the cost of other direct marketing efforts, Vidal says. If two companies distribute each other’s inserts, “the only costs are commissions to the broker and manager of the program and printing costs.”

Omaha Steaks relies heavily on package inserts, says Beth Weiss, corporate communications director for the company. “We feel that higher-end companies are returning to package inserts as they are a proven media option, providing an acceptable return on investment.”

Source: Condensed from 2007 Deliver magazine case study.

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Direct Mail is Still DM Champion

We’re seeing an explosion of new technologies and advertising possibilities in handheld devices, rich media, personalized URLs, digital billboards, SEM and more. But, let’s be clear: Ignore direct mail at your peril. It’s still the most reliable way to reach people in business or at home. It offers richer list and targeting possibilities, few restrictions for formats or message, and no blacklisting or filtering issues.

People like to receive direct mail. A recent survey revealed that 73% percent of respondents prefer receiving new product announcements by mail, versus 18% for e-mail. 86% said they prefer direct mail for official correspondence, such as bills, bank statements and financial reports, compared to 10% for e-mail. And, fewer people trash unsolicited direct mail when compared to e-mail, 31% to 53%.

If you want to reach specific individuals, deliver a message in the way you want, in a format you choose, with the least possibility of getting ignored, use direct mail. It will always be part of the mix for smart, aggressive direct marketing companies.

Source: Condensed from DMNews article by Dean Rieck.

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TESTIMONIAL FLYERS 25% of respondents have used testimonial flyers in the past 12 months, but only 3.9% of respondents use them as a control.

ENVELOPES #10s still dominate, but preferred practice testers* used significantly more 6"x9" (75.0% vs. 50.0%) Snap-Pak (25.0% vs. 7.4% overall), and invitation-look envelopes (60.0% vs. 42.6%) than other groups in the last 12 months.

*High quantity mailers who also tested creative elements more than the average respondent.

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