Direct magazine 2007

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contents[ ]

02 consulting editor and editors note

consulting editor Nici Stathacopoulos a note from one of

direct marketings leading gurus about the exciting times ahead

for the industry.

editor Michelle Sturman a brief introduction to this years

publication.

03 sponsor the direct mail centrethe DMC demonstrates why direct mail is so vital to the industry

as well as introducing an exciting new product.

04 direct mail = junk mail

Mashepo Majola, senior manager at the DMC looks at how to

address the perception of direct mail as junk mail.

06 sponsor the RCS Group

the RCS Group offers advice and tips on how to use direct

marketing effectively.

08 creating a platform for dialogue

Vaughan Berry looks at brand activation and experiential

marketing especially within the informal sector.

10 the demise of personal contact

Jodi Starkowitz investigates how online tools have changed

direct marketing

12 5 w ays to increase e-mail responses

Janet Roberts in conjunction with the Web Digest For Marketers

offers five easy ways to increase your e-mail responses.

13 podcasting

Michelle Sturman investigates the potential of podcasts within

the realm of direct marketing.

14 using mobile marketing to build customer relationships

Candy Goodman provides tips on to to engage in ethical and

relevant mobile marketing.

16 getting mobile with one-to-one marketing

Mark Angus writes about the third screen as an interactive

medium for direct marketing.

18 creativit y

directasked some of the worlds top creative directors working

in direct marketing what creativity really means in this

environment.

21 promises direct to you

internal marketing is just as vital to a successful direct campaign

as sending out the mailer says Terri Brown.

22 smart technology = smart CRM soluti ons

the future of smart technology is already here says Denvor

Phokaners. Are you ready?

24 databases

a good database is worth its weight in gold is yours really upto scratch, asks Michelle Sturman.

25 let maps show you the right direction

geo-spatial technology can help to precise pinpoint your target

market says Metse Phiega.

26 custom er strategy

Doug Leather wants to know if your customer strategy is

working as well as it should.

27 direct marketing takes centre stage

CEO of the DMA, Brian Mdluli, looks at the evolution of direct

marketing in South Africa as well as the Direct Marketing

Association.

28 world trends in CRM

Nici Stathacopoulos zooms around the world picking up best

practices.

29 a new era in direct

Melvin Chagonda looks at the South African direct marketing

trends.

30 using call cent res to d eliver eff ect ive CRM

Craig Ireland looks at how to use a call centre for effective CRM

31 is blended best?

Stuart Forrest investigates the advantages of blended contact

centres.

32 the best service is no service

Bill Flynn states that customers shouldnt have to interrupt their

busy schedules to get what they want from customer service.

And there is a way to achieve this.

34 360 Loyalty

Jean-Claude Latter looks at bridging the gap between brand

promise and delivery by creating a loyal workforce.

35 the glue that binds us

Liz Venter offers sound advice on customer engagement strategies.

38 permission m arketin g the big dif ference

Diane de Villiers explains the virtues of adding permission

marketing to the marketing mix.40 direct, meaningful , desired and eff ecti ve: t he custom

magazine

Fulvia Becatti looks at the benefits of custom publishing and

how to get it right.

case stud ies

46 eBucks / price n pride

48 mt n / eBucks

49 gcis / renault

50 soul city / telkom

51 microsoft / landrover

52 mtn53 st lukes

54 rcs / fn b

55 mweb

49 FNB / Sasko

publisher: Terry Murphy

consulting editor: Nici Stathacopoulos

editor: Michelle Sturman

advertising sales: Robyn Andrews

layout : Spencer van Graan

proprietor and publisher:

Systems Publishers (Pty) Ltd.

1st floor, North Block, Bradenham

Hall, Rivonia

Tel: (011) 234 7008

2007 Systems Publishers.

The opinions in this publication do

not necessarily represent the views of

the publisher

Print ed by: ContiPrint

editorial staff

1direct > 2007


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consulting editor[ ]

editors note

Welcome to the second issue of direct. This issue is a reflection

of what is happening in the world of direct marketing and

more importantly, of the acknowledgement that DM is

receiving from marketers. Whats great about direct marketing

is its adaptability. The present wave of new technology,

which is offering ways of communicating more effectively

with consumers, has lifted it into a whole new stratosphere.

This is why direct marketing is currently one of the most

exciting sectors in the marketing mix.

Within these pages youll find many articles by experts in

particular direct marketing fields, which contribute valuable

knowledge to this subject. Topics include internal marketing,

permission-based marketing, ethical mobile marketing, ways

to improve e-mail responses, as well as the latest trends. We

also have case studies I have to say a huge thank you to all

those who sent them in. While we all know how tightly

everyone keeps strategies and results to themselves, the

whole industry benefits by sharing insights into what works

and what achieves results.

Lastly, I have to thank the sponsors of this publication.

In no particular order, thanks to MTN, the Direct Mail

Centre and the RCS Group. All three of the above are

founder members of the Direct Marketing Association

of South Africa and all these organisations are committed

to furthering the direct marketing industry.

Michelle Sturman, editor, direct

a word from the topIn the world of direct marketing the period leading up to

the publication of the 2007 directmagazine has been

hugely energising.

We have had the Data Privacy Bill lurking in the wings; the

launch of the National Credit Act; the new opt in regulations

governing marketing text (SMS) messages; entering and

winning (or not winning) a Loerie and of course, there have

been the two CRM Masterclasses that have been held in

Johannesburg and Cape Town.

Its a huge pity that some of you missed the workshops.

Ideally, we should have had one full day in each city. We

intend to have the same speakers in each city next year as our

audiences were extremely responsive and our 10 speakers

delivered unique content and had so much to say. World

trends, changing consumer behaviour, mobile messaging, call

centres, the DMA efforts and opt-in databases, were among a

few of the key topics.

The direct marketing industry has many facets. Respect for the

consumer and the measurement of campaigns are key to our

success and we really do have the tools to do both successfully

and energetically. Not trading consumer details and refraining

from sending unsolicited messages (irrespective of the chan-nel) is an expression of respect. Interestingly, whenever some

one questions spam they always seem to refer to the junk

emails we receive from those awful people overseas. While

we can do nothing about that, a marketing message can be

clocked and a good marketer sent to the gallows for one mes-

sage that is sent out. I truly hope that we will also find a way

to stop the junk worldwide.

What prompts the consumer to read an SMS or take a call or

open the mail is usually a high degree of innovative creative

thinking. However, if the message isnt rewarding, relevant

and acknowledging, why bother? Consider this: sending out

10 000 mail packs or e-mails to a list which wont engage

with you, is just as bad as spray and pray advertising. Actually,

it may be worse.

As marketers and agencies that are leading the way, we also

need to educate and assist others where we are able to in

order to grow our capacity. It appears that despite having

earned our rightful place in the mix, we still battle to get

youngsters enthused by what we do and to draw them into

our side of the business. I believe that this is definitely the next

arena that we should concentrate on.

There are exciting times ahead indeed.

Nici Stathacopoulos, CEO

proximity#ttp

the innovative marketing services agency.


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direct mail centre[ ]

direct solutionsIn this age of fragmented media and with this customer-centric

environment, it is of paramount importance to choose the best

media for communicating with customers and prospects. The

need to communicate personally with the customer, in a targeted,

measurable and affordable way, has become a major challenge

for businesses worldwide.South Africa bucks international t rends that point to a decline

or stagnation in the growth of mail volumes. The moderate

absorption of technology and economic conditions in South Africa

means that there are still plenty of opportunities for the growth of

mail, particularly in the field of direct mail.

To this end, The Direct Mail Centre (DMC), the specialist division of

the South African Post Office, focuses on growing the use of

direct mail in different businesses and sectors of the market. The

DMC role centres around providing advice on the successful

implementation of direct marketing campaigns. This includes

assistance from the conceptual stage up to lodgment and post

campaign analysis. A large range of services and products that

cover all the different aspects of mailing are available.

servicesThe DMC offers campaign management, which is one of its

largest areas of expertise. It also offers advice and training on the

planning, development and implementation of direct mail

campaigns. This includes the assistance of personal consultants,

who are able to help with the preparation of business cases,

direct mail messages, target market selection, campaign

evaluations and response management. The campaign

management team works hand-in-hand with the database

management team and offers services such as the creation of

new databases, data capturing, data mining and cleaning,

market segmentation and geo-demographic mapping.

For those who wish to brush up on their direct marketing skills,

the Direct Marketing Centre offers basic, advanced and specialist

courses, as well as a library that includes marketing publications,

textbooks, statistics and legislation. Guest speakers and

industry leaders are frequently invited to run seminars covering

developments and important topics in the direct marketing industry.

The DMC provides a number of products that allow businesses

to communicate different promotional activities, ranging

from price sensitive to those that the creative industry will

salivate over.

3D marketing mailThe centre is in the process of creating a new package,

which is specifically designed to get the creative juices

flowing, increase response rates and combat restrictive postal

regulations. 3D marketing mail provides marketers with

creative freedom, as direct mail can be now constructed by

using a wide variety of materials such as rubber, cardboard,

paper, foam and plastic. As a result packages stand out from

the normal clutter, increasing the chances of a response. It is

also perfect for lead generation and creating brand awareness

and is ideal for launching new products. Please contact the

DMC for further information on the 3D marketing mail

launch date.

advertising mailIt is best if the content of addressed direct mail consistssolely of an advertising or promotional nature. Minimum

consignments consist of 1 000 articles per size or mass and

include a SAPO approved response device.

promo mailAs with advertising mail, contents may not include any

additional items that relate to previous business with the

client (invoices, statements etc). They may include

teaser/advance mailings (advising a customer of the

impending arrival of a promotional item) for addressed mail.

The minimum consignment is 1 000 articles per size. The

promo mail product can be used to recruit new customers,

send out information regarding special offers and provide

competition or fundraising details.

info mailThis is the right product to use if the distribution of

unaddressed mail of a promotional nature including

pamphlets, brochures, area newspapers, trade samples etc is

required. Info mail is great for promoting new products,

special offers and announcing meetings etc. Pre-testing

and follow up are available for this adaptable and cost-

effective service.

3direct > 2007

The South African Post Office has over 2 500 outlets nation-

ally and delivers more than six million letters daily to 10 mil-

lion addresses in South Africa. The mail business unit gener-

ates an estimated 65 per cent of total SAPO revenue from

approximately 80% of its business customers, as opposed to

individual consumers.

SAPO is wholly committed to the growth of direct marketing

as a viable advertising medium. The Direct Mail Centre is seek-

ing to partner with customers to grow their businesses

through the effective use of this medium and to grow the visi-

bility of the direct marketing industry in general.

products


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direct mail centre[ ]

Direct mail is one of the most powerful and effective means of

reaching consumers and this form of marketing offers a highly

targeted way to reach your current and potential customers.However, the growth of direct mail in South Africa remains minimal,

especially when compared to other marketing and advertising

media. Recent data from ACNielsen reflects that at the end of

2006 the total advertising expenditure across all media was

R19.2bn. The largest share was allocated to TV and print media

and was in excess of R14bn. Direct mail still ranks very low in

terms of the allocation of advertising spend at no more than 1.5

per cent. This picture is the complete opposite of the USexperience,

where direct mail ranks high on the list of options and competes

directly with TV and print. Total direct marketing driven sales

stand at US$1.85 trill ion or 10.3 per cent of US GDP.

Different factors impact on the growth of direct mail and in

order for us to reverse its position and facilitate its growth, we

need to get a few basics right. This includes an examination of

the junk mail label that has been attached to it.

definition of junkThe Oxford English dictionary describes the word junk as useless

or nonsense junk mail therefore refers to useless information

or to information that one does not want. As marketers we

know that this description is not at all accurate in fact, its

the exact opposite. By its very nature, direct mail is the one

medium that allows for targeted communications to a selected

audience with specific needs and a propensity to respond

positively to the particular products and services on offer. The

question therefore arises: How did such a powerful medium

known for its exceptional features end up being associated

with junk by the end consumers or recipients of mail? The

answer is simple: it is the result of reckless and irresponsible

marketing, which has not included the proper research on the

suitability of the lists used or the relevance of offers to the end

consumers. Marketers need to go back to basics when putting

together a direct mail campaign. By making a concerted effort,

I believe that we can begin to demonstrate that direct mail can

contain useful information and that it is not junk.

starting points:Show some respect. Respect should be one of the core

values that govern the relationship with customers and should

also apply to the way you communicate with them. Sending

messages to specific consumers on matters that are of interest

to them is a sign that you understand their needs and value

their time and that you are therefore only communicating

what is relevant to them.

In order to do this, you have to thoroughly research your list

and ensure its relevance to what you are trying to communicate.

This principle forms one of the basic rules of direct mail,

although it has been largely ignored by marketers when

putting campaigns together (not only fuelling the junk mail

perception but also wasting time and money). The selection ofthe target market and the proper use of marketing lists are

crucial to any marketing campaign. As a rule, a thorough

analysis of the list should be done before a promotional

campaign is sent to customers. If all direct mailers could devise

a way to target their mailings accurately, each piece would

become meaningful communication and junk mail as we

know it would cease to exist. (Ref: Essays of an Information

Scientist. Vol: 6 p1-5; January 3; 1983)

There is a value in keeping in touch with customers and regular

communications help to develop a relationship with them. We

do however have to guard against the common thinking that

holds that the mo re advertising w e do, the more effective

it becomes. In actual fact it may be more useful to use a less is

more approach, as too many indiscriminate mailings are likely to

annoy the customer, leading to a drop in campaign responses.

As Richard Krieger, Association of American Publishers once

explained, The best direct mail campaign is the one that mails

least. (Ref: Privacy Protection Study Commission, Washington

DC; Personal privacy in an information society).

By zeroing in on those prospects that are likely to respond most

favourably to an offer, direct mailers can counteract spiralling

printing, postage and other related costs.

Finally, it is our responsibility to pro-actively ensure t hat our

customers are in the know , particularly with regard to the

Privacy legislation and the options that are available to them.

I am specifically referring to the Opt-out register that was

launched by the Direct Marketing Association of SA to ensure

that those who do not want to receive promotional information

are removed from the mailing lists of DMA members. In doing

so customers also need to understand that once they decide to

go onto the opt out register, they are isolating themselves from

other information that could be relevant to them.

There is a still room for direct marketing to grow in South

Africa and here are some of the reasons:

l Heightened consumer expectations greater business and

consumer value placed on personalisation

l Positive economic growth

l Limited penetration of the Internet for now

l Growth of the middle class: this section of the population

has already passed the two million mark and is said to have

grown by 30 per cent over the past year, pumping an extra

R50bn into the economy.

The growth of this industry depends on all stakeholders a

commitment to enhancing its image and profitability is crucial.

Matshepo Majola

senior manager: Direct Mail Centre (A Division of the SA

Post Office)

direct mail =junk mailby Matshepo Majola


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rcs group[ ]

RCS Group

about the RCS Group GroupRCS is an independent retail financial services company with a

market capitalisation of R2.5 billion. The Foschini Group and

Standard Bank are shareholders, with 55% and 45% respectively.

The RCS Group was founded in 1999, using direct marketing

to market Personal Loans to niche sub-segments of the

Foschini Group database. Since then it has provided credit and

financial services to over 600 000 unique customers, primarily

through its Card and Personal Loan products.

Other products on offer are Vehicle Finance, Home Loans and

Private Label Cards.

RCS understands the unique credit requirements of retailers

and individual consumers. Thanks to this retail/consumer

understanding, through utilising the RCS Card, the RCS Cards

division has positioned itself as an outsourced credit partner to

over 7 500 merchants across a wide range of industries.

RCS prides itself on its expertise in consumer lending, direct

marketing, risk and analytics.

With regard to Personal Loans in particular, direct marketing

campaigns have allowed the group to attain high levels of

repeat loans and there is more scope for new and repeat

business from its customer base. The successful launch of the

newer initiatives such as Home Loans and Vehicle Finance

using the RCS database for customer acquisition proves the

level of brand loyalty that RCS has achieved.

RCS and direct marketing

Since its inception, the RCS Group has used direct marketing

as its primary method of customer acquisition. The RCS target

market is between 25 and 45 years of age; LSM 5 to 7.

Due to the nature of the target market, RCS focuses on

using direct mail and SMS as its primary direct channels.

However, RCS does have plans to use online marketing more

aggressively in future.

Having multiple products that all utilise direct marketing to the

same database obviously means that database and campaign

management is critical. On any given day there could be as

many as two million RCS mail-pieces in the market place. Says

Nicola Byers, group marketing executive: The focus at RCS is

no lengthy face to face

interviews, and no

complicated questions

RCS Group expertiserisk & analytics expertise

lTeam of analysts and statisticians

lScorecards/models across credit life cycle

l Sound management of risk policies and strategies

lReporting/MIS and database management

infrastructure

proven marketing experience

lLeaders in direct marketing

lIn-store advertising and marketing expertise

compliance & legal infrastructure

lIn-house attorneys

lClose relationship with the National Credit Regulator

world class systems

lCustomer level view

lDecision management software (TRIAD)

lDedicated IT support teams

lSignificant further investments in next 3 years


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being able to make intuitive changes to its campaigns. More

importantly, according to Byers, it provides RCS with the

opportunit y to interact directly with its customers and to

continue the conversations initiated in direct campaigns (such

as mail packs for acquisition mailings).

RCS fully supports and is fully compliant with the National

Credit Act but warns that self-regulation is critical, especially

in the light of the upcoming Consumer Privacy Bill and the

Protection of Personal Information Act. To this end, as a

founder member of the Direct Marketing Association of South

Africa, RCS is committed to helping the DMA to lobby on

behalf of its members and the direct marketing industry.

rcs group[ ]

on sending targeted marketing messages to customer touch

points. We try to ensure that we proactively manage how

many times a customer is contacted, as well as when, how

and why. The ult imate goal is optimising the lifetime value of

the customer through offering the right credit solution at the

right time.

To this end, RCS has invested heavily in an SAS Information

Warehouse to manage its direct marketing campaigns and to

facilitate the test and learn philosophy at RCS. At RCS we

test everything from creative ideas, to messaging, to credit

risk odds. We test; we measure; we learn and we refine, says

Byers. However, she cautions that using a robust testing

methodology is key to the integrity of the results.

Marketers must know their customers and remain abreast of

their customers changing needs. By using other information

gathering techniques such as statement inserts, surveys and

research, RCS is able to hone its future communication in a

manner that is relevant to the individual customer.

Byers also acknowledges that creativity in direct marketing

plays a huge role in the success of a campaign. Creativity is

crucial. Without it, youre going to face brand fatigue. If a

customer receives the same envelope/message over and over,

he/she will eventually stop listening, opening and reading.

Since RCS uses above-the-line as a part of its marketing mix,

the group tries to pull creative themes through all brand

touch points, thus giving existing and prospective customers a

consistent message.

RCS has its own call centre, which makes an enormous

difference in its line of business. It provides RCS with the abili-

ty to give life to response rates and to look beyond the num-

bers, which in turn makes it extremely proactive in terms of

credit power at your

fingertips

RCS card partners:

The RCS card can also be used at 7 500

participating merchant outlets countrywide, including:

Game

Dion

Makro

Supa Quick

Midas

Meltz

Sportsmans and Outdoor Warehouse

Glomail

Cashbuild

Build It

Builders Warehouse

Intec, Damelin and Lyceum College

top tips from the RCS GrouplTalk to the customer and not at the customer

lChange regularly be relevant to customers and

where they are at

lBe responsible

lTry different mechanisms (both in isolation and in

combination)

lTest and learn; test and learn; test and learn. Track all

your responses and spend time trying to understand

them these are your customers speaking to you.


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brand activation[ ]

In recent years direct marketing through brand activation has

gained a great deal of traction in the eyes of marketers and

the ever-evolving South African consumer. Given the

abundance of one-way communication through the cluttered

mediums of television, radio and print media, brands require

effective ways to extend and cement their share-of-mind as

well as a share-of-pocket with consumers. This is best

achieved through building a closer relationship with consumers,

by providing them with touch points where they can interact

with and experience a brand outside of traditional mass

branding campaigns.

Activation media are about creating an experiential marketing

interaction between the brand and the consumer. A connection

needs to be made with the consumer that goes beyond the

simplified messages that are inherent in above-the-line

communication mediums today.

Activation marketing is becoming increasingly popular as part

of a marketing mix strategy, due to a number of factors:

lThe fragmentation of traditional media

lThe changing lifestyles of consumers

lAn increasingly competitive South African retail environment

lThe fact that trust is created when consumers can experience

the brand first hand and link an already established brand

identity with a tangible product.

Effective brand activation is built on sound consumer and

product insights and on the creation of a creative, strategic

platform that attracts the attention of the target market and

allows the consumer to engage with the brand. During this

customer contact it is essential that the activation campaign is

executed by marketers who understand the target market,

who are able to effectively extend the brand beyond traditional

advertising. Bringing the brand to life in the mind of the

consumer will only work if the brand image is consistent and if

the quality of the communication platform and message is

in-line with the established brand values and identity.

The success of the activation campaign therefore hinges on

the knowledge and insight (regarding the target market) of

the marketer or the brand manager, as well as on the ability to

translate this knowledge into an effective communication

platform. This transfer of knowledge needs to be properly

implemented, from the briefing process through to the

selection and training of all promotional teams. Promotional

staff become the link to the target market. If they are not well

trained, credible, presentable and able to communicate with

consumers, one loses the opportunity to connect with the

target market on a meaningful level.

Creating a two-way communication process between a brand

and consumers is the focus of any brand activation campaign.

These interactions should lead to the building of relationships

and they represent an opportunity to reinforce a sustainable

brand image and ultimately to affect buying patterns. The key

to this communication is the use of well researched and

targeted messaging, since the broad stroke approach to mass

marketing is often lost on the diverse cultures and mult iplicity

of languages in South Africa. This messaging is only effectively

created through a thorough understanding of the target

market and the product.

The location of the brand activation and the implementation

of creative ideas are among the key factors that ensure

success. There are numerous channels, other than traditional

in-store and mall activations, that can be used to reach people

today. Consumers need to be reached in innovative ways and

in unusual settings. Using non-traditional settings to create

novel customer interactions has become the key to attracting

the attention of South African consumers.

The informal retail sector in South Africa has also influenced

the kind of direct marketing tools that are used to reach this

market. Brand vans provide a highly focused and visible sales

and distribution resource that can effectively reach a pre-defined

consumer base within a particular geographical area. Other

innovative activation techniques include task force teams that

can handle any non-traditional activation campaigns and

youth events, such as in-school and campus activations.

There are limitless channels that brands can use in order to

reach our fragmented consumer bases in ways that are

both innovative and appropriate. However, companies need

to realise that activation media need to build relationships

with their target markets by offering value and creating brand

awareness through direct interactions that are meaningful

and relevant.

Vaughan Berry, director and head,

Activation Division, ProVantage Media

creating aplatformfor dialogue

by Vaughan Berry

there are limitless channels that

brands can use in order to reach

our fragmented consumer bases

in ways that are both innovativeand appropriate.


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innovative means to stay in touch with their peers. MXit, a

text chat application, charges less than 2 cents per SMS,

severely undercutting the costs of SMS services. MXit has

spread faster than wildfire, with over four million South

Africans using it every day. This number increases by an

astounding 12 000 users daily and 100 million messages are

sent each day.

Typing an SMS of 450 characters in less than 30 seconds,

without making mistakes, is not uncommon among the

youth. Words are reduced to strange abbreviations, for

example, want t o becomes wna and thought becomes

thawt. A self-confessed SMS addict, known as fast fingers

among her peers, says that she has to re-read her varsity

papers carefully before submitting them because spelling has

become a problem for her. On an average day when Im

being good I send about 300 SMSes. Its incredibly

addictive. Sometimes I get into bed at 11pm and SMS until

4 the next morning. My mother jokes that she needs to join

MXit so that she can chat to me more often.

It seems the world is lending itself to excess: there are more

potential pleasures and displeasures; there is more to

withdraw from and increasingly there are more insatiable

withdrawal symptoms. Its fair to say that most of us are

addicted to something these days, whether we are increasing

our friends list on Facebook or SMSing rather than talking.

It wouldnt surprise me if all future communication is written

in txtspk (texting language). Now, if ull xcuse me, I need

2 update my profile on Fbook.

Jodi Starkowitz

Stark-e, an e-commerce solutions company

[email protected]

online[ ]

punctuation marks. In November 2006, Britney Spearsreportedly used text messaging to inform her husband, Kevin

Federline, that she was filing for divorce.

One of the most noticeable results of excessive Internet use is

a lack of attention to daily responsibilities. The average

MySpace page is visited 30 times a day and the average US

online user spends 70 minutes a day online. Its not surprising

that most businesses have blocked employees from accessing

social networks. However, banned access in the workplace has

not deterred avid MySpace and Facebook aficionados from

surfing their favourite pages after hours, until the early hours.

Moreover, blogs can serve an extremely informative and

positive function. The University of Cape Town has a flourishing

blog, which offers students and lecturers the opportunity to

express their views and exchange information about subjects

pertaining to their curricula. Blogging is even creating authors.

Lulu, a company founded by Bob Young, promotes blooks

printed books based on blogs. Lulus list of fictional blooks

include Belle du Jourand Intimate Adventures of a London Call

Girl, which have gripped at least 15 000 bloggers a day.

While glossy magazines continue to divulge the personal

exploits of Hollywood stars, the youth no longer aspire to be

like their rehab devotees but rather to be celebrities in their

own right. This new trend, aptly named celeb-zero, has

emerged due to the increasing popularity of blogging and

YouTube. Founded in February 2005, YouTube is the leader in

online video and the premier destination for watching and

sharing original videos worldwide. The youth are motivated to

launch their own blogs or to broadcast themselves on

YouTube, in this way attracting their personal fan clubs. The

most viewed video clip on YouTube has been watched more

than 50 million t imes proving that 15 minutes of fame is not

an impossible feat. As for talent its purely optional.

Alternatively, you can claim your 15 minutes in the spotlight

by typing a text message. Sixteen-year old student, Ang

Chuang Yang of Singapore, has earned a place in the Guinness

World Records thanks to his super-fast thumbs. Yang typed a

160-character SMS message in an astounding 41.52 seconds,

beating the previous record by seven-tenths of a second. The

SMS reads: The razor-toothed piranhas of the genera

Serrasalmus and Pygocentrus are the most ferocious freshwater

fish in the world. In reality they seldom attack a human.

I think most of us would take 40 seconds just to type the first

three words.

In South Africa, while not everyone has a computer and an

Internet connection, almost everyone owns a cellphone.

The mobile youth of today are constantly seeking new and


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15/60 13direct > 2007

The golden rule for developing and disseminating podcasts is that

in order to build an audience, you MUST provide unique, relevant

and interesting content that is not found anywhere else. Its a

good idea to list them in as many podcast directories as you can

in order to gain access to as wide an audience as possible.While most podcasts are free when used to build brands and

loyalty, you can also make money. If you really think yours is

worth paying for, apply the golden rule and try asking for a

subscription fee. You can also go the traditional route here and

look for sponsors (approach this in the same way as you would

any other sponsorships).

In-house advertising with links back to a website can feed sales and

also provide a measuring tool for how successful your pocast is.

Make sure to integrate your podcasts with the rest of your

marketing strategy and remember that this is one-to-one

marketing. This approach is not the same as placing a TV or

radio campaign on air. Podcasts generally attract a specific

niche audience and while content is King, costs can be justified

by segmenting the database into very niche audiences. This is

invaluable data.

Remember that a podcast can provide a direct and regular line of

communication with your customers/subscribers and that relevant

content can increase loyalty to your brand. Providing valuable content

can really set you apart from your competitors. Regular interviews

and expert opinion pieces can put you ahead of the curve and

confirm your status as a leader in your industry, for example.

If youre unsure, find an expert in podcasting to help you a

badly executed podcast can do a lot of damage. If you need a

helping hand, there are many podcasts on podcasting. Try

these podcasting sites: www.podcast.co.za; www.podcast.net;

www.podcastingnews.com;www.freshpodcasts.com (and dont

forget iTunes).

podcasting[ ]

podcastingby Michelle Sturman

Do you fancy learning Mandarin Chinese courtesy of the Sunday

Times UK; watching BBC World Service documentaries or

viewing travel pieces from The Travel Show? Have I mentioned

that it s free and that you can do it from the comfort of your

laptop or iPod at a time that is convenient for you? Impressed?

Welcome to the Web 2.0 version of direct marketing.

Podcasting is a growing phenomenon and the above examples

represent just a few of those that Ive downloaded recently.

Whats even more impressive (at least from a branding point of

view) is that I selected them from among many in the same

category because I trust and have a relationship with the brands

in question. Now my faithfulness (to these brands) has been

validated as theyve provided me with excellent, extra content

that is both relevant and useful.

You dont even need an iPod to make use of podcasts. I

downloaded from Apples iTunes store simply because I have an

iPod and the necessary software on my laptop, which is where I

view them. Luckily, most podcasts on iTunes are free and you

can subscribe to a series, which will be downloaded automatically

every time you load it up. Unfortunately local regulations

prohibit downloading anything other than free podcasts from

iTunes. They also (more importantly) prevent us from uploading

podcasts to the site. Luckily, iTunes is only one avenue there

are many brands and many other sites that offer podcasts.

A podcast is merely a way to distribute multimedia content and

should definitely be on any marketers list of tools (it happens

to be very cool and trendy). You will score points in many circles

in South Africa if your brand offers a podcast. A huge benefit is

that they can be played wherever and whenever whilst

commuting, multitasking, working or on the beach.

how to use a podcastPodcasts are relatively quick, cheap and easy to produce and have

the potential to be used by millions! They can be either audio or

video and the possibilit ies for brand building, brand awareness

and getting directly in touch with your audience is limited only by

your imagination. You can make your own mini series, offer Q&As

with the big boss or provide expert advice columns.

You can also take podcasts in-house and use them to dissemi-

nate important company information that can be downloaded

at leisure e.g. training manuals, CEO announcements etc. Its a

great way to impart information on a worldwide basis across

your company and employees are no longer tied to hours that

are often quite unsocial when attending video conferences. By

using software, you can also make them interactive and live if

you wish to do so.


16/6014 direct > 2007

ethical marketing[ ]

using mobilemarketing to build

customerrelatioships

Lets do a simple SMS competition. Well market a short

code number and get them to SMS our brand name to it

and this will increase brand awareness and sales.

What do we do after this? Is it just as simple as that?

Most of us have a cellphone within reach or on our person

most of the time, making this form of communication the

most direct, immediate and personal way of reaching

customers. Mobile marketing is widely used and is becoming

one of the most powerful media available to marketers

today, especially in South Africa.

However, despite its powerful nature you have to listen to

what your customers have to say in order to get the best out

of this method of marketing, together with other traditional

media, to build customer relationships and maximise the

return on investment and the efficacy of your brand.

i need to trust you if I am going tointeract with youCustomer relationships are dependent on the creation of

trust. It is our responsibility to use mobile marketing ethically

and appropriately in order to unleash its true power. At the

latest Interactive Marketingseminar held by the Institute of

Direct Marketing in April 2007, there was a great deal of

talk about the ethics involved in TV text-in competitions inter-

nationally, reflecting the potential hazards that face mobile

marketers. Everyone involved, from the programme makers

and the broadcasters to the show producers, should be operating

ethically and with a high degree of t ransparency and care for

the viewers who are also their customers. They have a duty to

deliver value and content in an accountable fashion. SMS

competition entrants should feel safe and secure in the

knowledge that there is a fair chance of winning a competition.

dont spam meIt is precisely because the cellphone is held within your

customers personal message space that unsolicited

messages can be even more detrimental to your brand than

other messaging media.

The keywords are:

permissionMake your customers feel as if they are in control of the

communication and that they have some power when it

comes to managing their relationship with you. Allow them

to opt-in to receive your messages and honour their requests

to be unsubscribed at all times. Having said this, it is important

to provide additional channels through which they can

unsubscribe, such as a website.

Customers should be drawn towards mobile marketing in an

integrated fashion through other traditional media, rather

than by sending unwanted messages to their cellphones.

timingTake all the necessary steps to ensure that your customer

receives the message at the most appropriate time and when

they are able to take the required action. This is normally

during working hours and not in the middle of the night.

value and relevanceContent should be relevant to your target market and shouldalso be of some value to them (either informational value or

possibly even entertainment value). When your customers

first receive your message, it is important that they are able

to identify who is sending it at a glance. This will immediately

make them more open to receiving your communication and

responding to it .

dont just talk to me listen to meSMS is a two-way communication channel and should be

used not only to talk to your customers but to listen to them

by Candy Goodman


17/60 15direct > 2007

use it or lose itIf youve spent the money and taken the trouble to run an

SMS competition, use it. Dont let the database gather

cyber-dust. Data ages and your customers will forget that

they ever knew you. If you dont use the data you have

collected you are wasting your money and throwing away

your most valuable asset, which is the ability to talk to the

most important person in your business your customer.

Getting any of the above wrong can lead to your brand

being damaged, as well as to the loss of customers.

Mistrust is created in this way. Abuse and the failure to

understand how to use mobile marketing in an ethical

manner will only turn people off. (Consult the legal and best

practice guidelines of the following organisations: the DMA

of SA (http://www.dmasa.org ); the Mobile Marketing

Association (MMA http://mmaglobal.com); WASPA

(Wireless Application Service Providers Association

http://www.waspa.org.za ), as well as other related

professional bodies.)

Observing the correct guidelines can lead to the voluntary

and positive spread of your message through customer advocacy.

According to the Mobile Marketing Association, if you get it

right , you potentially have one of the most persuasive direct

communication channels working for you. There is much

value to be found in enlisting the services of a professional

mobile marketing consultant who understands how to use

the medium in an ethical manner, while creating innovative

and unique ways to activate your customers and build a

long lasting and mutually beneficial relationship with them.

Candy Goodman

managing director

mo-B

www.mo-b.co.za

ethical marketing[ ]

as well. The first step is always to have a reply message when

you send out a bulk SMS. This lets your customer know

that someone received the SMS and it opens the door for

further communication. When your customers do reply to

you, read their responses and take care to note any action

that is required (for example, a request to be contactedor unsubscribed).

make me feel importantIn order to continue this relationship (or friendship), you

should address your customer by name whenever possible. If

you dont have his/her name you can always embark on a

focused profiling campaign to get it. Your customers name

is gold.

Remember that you are not speaking to a cell number but to

a person. Make sure that the tone of your message is warm

and personal and that it doesnt sound automated.

Have you ever thought of using celebrity marketing? This is a

powerful phenomenon that creates a win-win solution all

round for the fan, the celebrity and the advertising brand

(see the case study of how Mara Louw assisted Sasko Flour in

promoting their message of better tasting baking on the TV

show Mara & Friends) p56.

If you are sending a regular message, try changing it each

time to tell customers something different and interesting in

order to keep them engaged and possibly even entertained.

The challenge is to tantalise your customers by providing

them with something that is unique and creative.

abuse and the failure to

understand how to use mobile

marketing in an ethical manner

will only turn people off.


18/6016 direct > 2007

mobile marketing[ ]

the third screen delivers an interactive

medium for direct marketingWhile television and cinema have long dominated the

channels for electronic advertising, a third screen has now hit

the marketing fraternity with the advent of mobile marketing.

It is estimated that there are over 30 million cellphone

subscribers in South Africa, each with a mobile device that

has the capacity to receive marketing messages (as well as

advertising and interactive content) and to deliver information

directly into the hands of users. While marketing pundits and

advertising consultants have been slow on the uptake, the

emerging opportunities cannot be ignored as the benefits of

mobile marketing become more obvious and pioneering

companies start to target the third screen.

Mobile marketing enables companies to target precise

marketing messages to specific groups by age, ethnicity,

home and business ownership and to deliver content to

them at a time when they are most likely to respond. By

using Bluetooth and infrared technology, a few mobile and

one-to-one marketing agencies are already targeting

consumers in shopping malls and retail outlets with what is

known as near field communication. Working with technical

developers and network companies, they are able to develop

concepts and deliver rich media content to targeted

customers within a two to three metre range, by sending

digital adverts (consisting of marketing messages that are

linked to specific, advertised brands or services) directly to

their cellphones. The technology provides organisations with

the opportunity to engage and interact with a customer

instantly and most importantly with the customers

permission. Targeting customer databases or consumers at

events and in specific retail outlets, these companies are able

to direct specific campaigns and marketing messages to

identifiable public groups all within a one-to-one marketing

environment. They have developed innovative ways of targeting

these consumers by sending them information (push

campaigns) or by gett ing consumers to respond to specific

promotions (pull campaigns), while adhering to permission

marketing policies that allow consumers to opt in or opt out.

The results are trackable and measurable.

This form of mobile marketing is being hailed as the best

consumer approach, as digital content is only sent to

consumers cellphones when they want to receive it (e.g.

when they are in a particular store or when they make a

conscious decision to interact). If there is no consumer

agreement or if the consumer is unaware that they are being

targeted by wide area Bluetooth broadcasting (known as

Bluejacking), this can be seen as spamming. There have been

many cases where consumers have taken shopping mall

managements to task, believing that their privacy is being

invaded with adverts they have not requested and do not want.

pull campaigns vouchers and secure

ticketingMobile and one-to-one marketing agencies can deliversecure, brand promotional campaigns directly to the mobile

handsets of a target audience at specific times of the day.

This maximises the likelihood of a purchasing decision by the

customer. These vouchers are able to contain barcodes, 2D

pixel matrix images and/or numeric codes, which are

delivered by SMS. The vouchers can be linked to above the

line media or advertising campaigns, allowing customers to

text in a keyword in order to receive promotional offers.

Each voucher is unique and once it has been redeemed it can

be suppressed, which eliminates the possibility of a security

getting mobile with

one-to-one marketing

mobile and one-to-one marketing

agencies can deliver secure,

brand promotional campaignsdirectly to the mobile handsets

of a target audience at specific

times of the day.


19/60 17direct > 2007

one-to-one marketing in printSome mobile and one-to-one marketing agencies have

teamed up with print design specialists to offer one-to-one

marketing solutions across both mobile and print mediums.

Using both mediums, these agencies are developing cutting-

edge marketing concepts and ingenious ways of targeting

customers and business persons. Through the use of

sophisticated printing software, print design machines and

mobile marketing technology, they are able to produce

individualised, liquid printed, tailor-made literature that is

targeted to each individual customer by name, as well as

information and variable data that only they will want to

see. With graphics which can be changed according to the

market sector, all editorial, copy and marketing messages are

personalised to each customer, speaking in their language

and offering them services that relate to their organisations.

In this way marketing messages are modelled to consumer

requirements and advertisements can appeal directly to each

customer by promoting products that they are attracted to.

With mobile and one-to-one marketing, you can track the

effectiveness of marketing campaigns and gauge the

response of customers to products and services on an

individual level. Its the next wave of marketing and many

experts believe that it will revolutionise the way that

businesses and professional organisations communicate and

market their products and services. The key to success is

becoming interactive with each consumer and providing

customers with what they want on a one-on-one basis.

Mark Angus

managing director, Innoviate Interactive Agency

[email protected]

(with Gordon Parkin, managing director, Brandscape)

mobile marketing[ ]

breach or an abuse of the system. The issuing, requesting

and redeeming of vouchers is tracked and recorded on a

CRM database, in this way assisting a company to build a

highly profiled customer database for ongoing promotions.With secure ticketing, event agencies and other companies

can rely on the expertise of mobile and one-to-one marketing

agencies to create, distribute and authenticate tickets for

events. As customers arrive at these events, they are able to

scan their embedded barcodes and their tickets are then

printed out by portable or fixed on-site high-end scanners,

which interpret the unique 2D pixel matrix codes that have

been sent to each mobile phone.

push campaigns digital contentRetailers and businesses now have a new way of allowing

people to access relevant information and content on their

mobile devices. As consumers enter a live area, be it a shop,

office or event, they can activate Bluetooth or infrared on

their handsets. Mobile marketing systems are able to detect

their phones by proximity and can request their permission to

opt-in and receive information. Digital content that is

optimised to the make and model of the handset is then

delivered directly to the users phone.

By using small electronic Hypertags that are attached to

posters, displays and exhibition stands or to sashes that are

worn by roving promotional staff, companies are able to

send free digital content to these consumers. This content

could include anything from digital adverts; mini web

browsers; videos; music; vouchers; invitations for events;

games; live information; MMS business cards or contact

information. This is increasingly becoming a great way for

companies to run competitions; conduct live polls and

voting; make promotional offers; brand new products and

services or conduct customer surveys.

with mobile and one-to-one

marketing, you can track the

effectiveness of marketing

campaigns and gauge the

response of customers to

products and services on an indi-

vidual level.


20/6018 direct > 2007

creativity[ ]

direct asked a few of the worlds finestcreative personalities to tell us about

creativity in direct marketing, its ori-

gins in the caves of the Neanderthals

and its evolution in this modern era of

Facebook, iPods, the PVR and theInternet. In this article these experts

unpack their knowledge and skills, as

well as offering some simple insights

regarding creativity in the direct mar-

keting industry.

The point is that the phenomenon of consumers being mere

passive observers of advertising is long gone. Today people

relish the opportunity to interact, to add and to influence.

For me this has always been the power of direct. It is the

point where ideas meet the real world and where brands can

really get under the skin of the consumer. If you dont

believe me, look at the Titanium winner at Cannes this year.

The Burger King game is a brilliantly executed idea. It has

also enabled BK to get in front of their audience for far

longer than a 30-second TV ad would allow.

This thinking is right at the heart of our direct work for

Guinness (incidentally also a winner at Cannes). We recognise

that for a hard core of Guinness drinkers our relationship is

similar to that of a close friend. (These days this is more

fashionably labelled CRM or eCRM.) We remember their

birthdays, we give them something for Christmas and we

invite them to the really good parties. Certainly we have a

shared sense of humour and are interested in similar things

but more importantly, like a good friend, we want every

contact to leave them a little happier. In order to do this we

need to have a two-way relationship.

This may mean sending them seven birthday cards (because

we know that as we get older we find fewer cards on the

doorstep) or sending them viral e-mails that feature an Irish

dancer you can put your own head on and send to friends

as an invitation to a St Patricks Day party (because we know

youre the most fun person in your gang). Our direct

communications always start from the Howard Gossage

position that people will read/watch whatever interests them

and sometimes this is an ad. Of course, the black stuff is central

to all the creative (just like burgers and eating is in the Sneak

King game for Burger King) but ultimately were providing

useful content first and engaging in the act of selling second.

Talking to consumers in this way on a one-to-one basis and allowing

them to physically interact with the brand over a period of time

creates a deeper, more profound and longer lasting relationship

with the brand than the occasional burst of entertainment.

So fish anyone?

directcreativity

johan verest, co-founder and

creative director, I DO, BelgiumI believe that creativity came about long, long ago to attract

attention. Caveman Oumph or maybe it was caveman

Groumph (historians arent really sure) wanted to get more

attention from the spirits, so he made his grotto paintings

more colourful and more detailed and he painted an auroch

instead of that boring mammoth.

While creativity still has this function today amongst modern

cavemen and cavewomen, it has acquired an additional

dimension: the dimension of respect.

I believe that creativity in DM is not only a way to attract the

attention of our customers; it is also an expression of our

respect for them. Most of the time when we knock on their

doors we are uninvited and unexpected. If were asking for

five minutes of their precious time, lets provide them with

some entertainment in return. Its the least we can do.

Respect is also a matter of not taking up any more of their

time than is necessary, which is why I will stop here, as you

must have better things to do. Have fun, heirs of Oumph and

Groumph and be happy.

daren kay, executive creative

director, Tullo Marshall

Warren Limited, UK

Give a man a fish and youll feed him for a day. Teach him how

to fish and hell feed himself for a whole lifetime.

When I think about South Africa I think of Jurassic Park-sized

trees, a night sky full of stars and loads of amazingly warm

people.

Coincidentally, its also the place I shot a direct response

TV ad for Oxfam, from which the opening lines of this piece

were taken.

It was shown all over the world and went on to become one

of the most successful Direct Response TV (DRTV) ads of all

time. At the time DRTV was the next big thing. The fact that

people would watch a TV ad, pick up the phone and give us

their credit card details was mind-blowing.

However, today all this seems charmingly quaint in an age of

viral e-mails, virtual worlds and blogs.


21/60


22/6020 direct > 2007

peter reily, 20:20 LondonIm often asked how I define my agency. Is it a digital agency

or a direct marketing agency? Is it one of those creative

agencies? Is it an agency at all in the normal sense of

the word?Its helpful for many clients to think of their service suppliers

as specialists in their chosen fields. At 20:20 we are blessed

with forward-thinking clients who challenge us to create new

and exciting ways to mobilise their customers and prospects.

More often than not this means using a variety of methods

and mediums: print, TV, digital and of course, direct market-

ing. However, the single most signif icant factor in achieving

success is derived from a clients understanding that creativity

is the starting point and effectiveness is the finishing line

and nowhere is this more exciting than it is in the area of

direct marketing.

In recent years, the specialist field of direct marketing has

shown itself to be a friendly sort of fellow, opening its arms

and embracing digital, mobile and even that brash chap called

TV who likes to keep himself to himself. My point is that this

form of marketing allows the greatest creativity because it

acknowledges and feeds off every other sector. For my money,

anyone who is thinking of a career in advertising should choose

direct marketing as the most dynamic and exploratory sector in

the wider advertising industry. Take a look at the recent Cannes

Lion Awards. The Grand Prix prizes in each sector give you a

snapshot of the ad industry in 2007. All the usual suspects are

there: clever special effects in the TV category, simple puns in

the Press category and head-turning images in the Outdoor

category. Now look at the direct winner and you find

something altogether more innovative and engaging.

Direct is by definit ion the place where we creative types can

spark a dialogue between brand and prospect. This dialogue

can continue for years until the prospect is ready to take the

relationship further and because we are having a two-way

conversation with prospects (as opposed to other media,

who are often simply shouting) we have many more creative

opportunities to engage in. This is the bottom line with

direct marketing it is the opportunity to use creativity to

engage in ways in which other mediums cant.

stu stobbs, creative partner,

proximity#ttpAbove the line, below the line, through the line to hell with

the line.

I used to think that the line was still there because clients

still think in that way. While this is partly true, the fact of the

matter is that we in the industry are even worse. We who are

meant to be on the cutting edge of society and communication

are stuck in our ways and are still protecting our turf or

speciality. How many times have you heard sweeping

statements like direct is better than TV or vice versa? That

may have been true a while ago but now things have

changed. The world of advertising consists of a myriad of

colours and possibilities rather than only of black and white.The line refers to media options and our job is not to push

a particular medium. Our job is to push our clients products.

The product doesnt care whether its on TV or radio or in a

mailer. All that ultimately matters is that it gets sold and

what is the best way to sell it? Start by discovering who you

are trying to sell to. If its a guy who sits around and watches

TV all the time, do a TV ad. If its someone who lies on the

beach all day, write your message in the sand or on a towel

or hide it in an ice cream. Its all about using the best

medium (or mediums) for the target, the idea and the job.

If no medium exists, create a new one.

They painted fresh lines on my street today, which is great

because we need rules of the road that govern where we

drive, so that we dont all die every time we get behind the

wheel. (After all, its not really a great idea to encourage

creative driving.) However, were not in the business of road

safety (thankfully) and lines only restrict our thinking. So

lets get rid of the bloody line and the restrictive silo mentality

that goes with it before it gets rid of us.

andrew tompkins, creative

director, G2 Sydney, Australia.Every year the Australian Direct Marketing Awards (ADMA)

continue to set a high level of creative standards, with a

greater number of entries and a record number of finalists

living proof that Australian DM creative is well and truly alive.

What is interesting is the need to combine DM and digital in

a seamless integrated campaign. This is the next generation

of DM strategies, which is continuing to evolve via mobile

marketing strategies. It involves communication with the

audience at every level and entry point and uses creative and

direct marketing knowledge as a base to drive the message

home, at the same time not loosing sight of the fact that

every thing we do must be measurable.

The fact that Australian work is now being showcased at

leading world creative award events such as the Cannes

Lions, is a testament to the outstanding level of Creative DM.

Australias creative footprint in the direct marketing industry

is beginning to take shape, especially as the industry is

evolving from being print based to becoming

a totally integrated solution. Understanding the roll that

creative plays in the many opportunities that are presented

by digital media and how best to integrate the digital

channel into multi-channel marketing campaigns is the key

to our success.

creativity[ ]


23/60 21direct > 2007

engagement is money spent on fulfilling that promise. Many

companies still dont realise that the sum of the advertising,

brand building and public relations functions that are

delivered to an external audience dont come close to having

the same impact on their brands as their employees have.

One of the biggest reasons for employees not being able to

deliver the goods, is that theyre not aware of the goods in

the first place. Its usually only once campaigns have been

conceptualised, developed and designed, that any thought is

given to employee communication. Frequently employees are

only informed of campaigns once the mailer has already

landed in customer post boxes and by then its too late.

Certainly, you can expect a few customers to be a little unhappy.

Not everyone is going to walk out with a product in their

hands and a smile on their face. You cant win em all.

However, the few who do get way are costing you more

than you think, especially with big-t icket items such as TVs

and bonds on houses or cars. Just a handful of customers

who choose to buy can significantly increase your ROI.

Entrenching the kind of knowledge, culture and service ethic

that is required to make good on a companys commitments,

demands a strategically driven, focused and planned internal

marketing calendar.

Its not as difficult as it sounds. Internal marketing is simply

borrowing marketing tricks and applying them to a different

target market your employees. By marketing messages to

your int ernal audience, rather then trying (unsuccessfully) to

instruct, you can ensure the effective consumption of

information and more than this, you can ensure that the

messages that you send out are understood and turned

into action.

This is where the magic lies. When insight is turned into

action, you can drive business growth and ensure that good

marketing doesnt end when the envelope is opened.

Terri Brown, director of Actuate

www.actuate.co.za

internal marketing[ ]

direct to youYour direct mailer is full of guarantees about products,services, competit ive pricing, reliability, usability and availability.

Its also full of subtly implied promises about your brand,

your customer experience and the service that customers can

expect when they come through your door.

While these promises are easily made by marketing

departments (in collusion with advertising agencies), the

reality of whether they are kept or broken lies with your

employees, particularly with those that face your clients every

day. Unfortunately, there are a hundred degrees of separation

between the people who make them and the people who

keep them or not.

Most of us have had that experience. You know, the one

where you walk into the shop/bank/hotel and the experience

you receive is nothing and I mean nothing like the pledge

that was made in the direct mailer. As you stalk out of the

restaurant/airport/garage muttering and cursing (and using

the odd expletive), you ask yourself why you never get the

service/product knowledge/efficiency that you are promised.

Companies are making big commitments to consumers and

theyre spending a lot of money on making them. However,

what are they investing (in terms of time, energy and money)

in delivering on their promises? In order to ensure that our

actions are in line with our commitments (thus ensuring

client satisfaction and conversion), we need to dedicate more

energy to those who are responsible for delivering on them.

Ultimately, its not the brand agency, advertising agency, PR

agency or marketing department executives who own your

brand. They are only the facilitators who define its promise.

Your employees own your brand they are accountable for

defining the reality of your pledge to deliver.

To ensure that employees have the knowledge, skills and

experience to meet the high expectations of customers,

companies need to invest in marketing internally. Advertising

spend is money spent on making a promise, whereas employee

promises

its not as difficult as it sounds.

Internal marketing is simply bor-

rowing marketing tricks and

applying them to a different tar-

get market your employees.


24/60


25/60


26/6024 direct > 2007

databases[ ]

mining

goldA database is like a goldmine. Blast away wherever the fancy

takes you and youll find a few worthwhile nuggets. Dig carefully

and with informed precision however and youre likely to hit the

jackpot. If mined in the right manner, a database can yield huge

returns in terms of both monetary value and customer information.

Unfortunately, too few companies treat a database with the

respect it deserves. All too often it is filled with outdated,

useless information and anything and everything is dumped into

it. Frequently a number of databases are in use for example,

the marketing database that is used by the marketing team,

the one that is used by the sales force, as well as the lists of

contacts that reside with various other employees. No one has

taken the trouble to blend them together into a seamless,

active, updated and relevant file of valuable customer data. The

merging of disparate databases can have significant marketing

worth (once they have been updated and de-duped).

A database can actually become a living entity which provides

valuable data that everyone is able to use to suit their particular

purposes (eg the sales team for prospects and the marketing

team for mailings, promot ions etc).

Once this is done, the hard work begins. An up-to-date

database only has value if it is mined correctly. Once it is

cleaned up, companies tend to believe that its useful and they

implement a direct marketing programme. While it is useful

up to a point and while it does get results, it can only take a

campaign so far. Even if you have fewer returns and a higher

response rate, you still dont really know the customer.

What is marketing all about today? The answer is: targeted

marketing and a 360 view of a customer. In order to achieve

this, data analytics, including market segmentation, is

required. The more information about a customer you add to

a database, the easier it is to segment your customers into

smaller target markets, which in turn allows for more targeted

messaging. Its as simple as that. The result will be a much

higher response rate, paving the way for cross-selling,

up-selling and increased brand loyalty.

To do this, everyone that has customer contact must be involved

or must at least have access to a regularly updated system.

Deciding what information to add is key and once again, buy-in

from everyone is required. The marketing team may not need

the same information as the sales team, so separating strategic

information for each function is a good idea.

Collecting information can start at the storefront or wherever

there is a direct interface with a customer. Its crucial to

provide the usual explanation and to go through the process

of opting-in. Only ask for details in order to target customers

specifically with offers etc, which are pertinent to them

(remember the new legislation). This is a great step towards

adding valuable customer data that you would probably

otherwise never get. Adding in loyalty card information (what

is purchased and when), as well as learning why certain items

are purchased, can add to the profile. For example, was an

item bought for a childs birthday? Discovering what your

customers purchasing habits are and keeping a record in the

database can help to make all direct marketing much easier. It

can also have a spin-off in other areas, such as custom

publishing. Capturing information at every contact point

should be a given as it can help to provide ideas for improved

service and new products etc (dont forget psychographic

profiling and lifestyle variables, as well as RFM recency,

frequency and monetary values).

One must however, be careful not to simply put customers

into little target boxes for the purpose of direct marketing

campaigns. More can and must be done. Insights into how

and why people are buying must be applied focusing only on

what gets sold is not sufficient.

Segmentation can help with this but the segments need to be

clearly defined before using them with the variables that make

sense for whatever one is trying to achieve e.g. brand building,

direct marketing, up-selling etc. There is also a danger of too

much segmentation, which can result in lost customers.

Profiles that everyone can understand are imperative.

Identifying the differences between customers and applying

external research (consumer trends or geomapping, for

example) is important. Incorporating high-end analytics is also

advisable. This should even help with elements such as

monitoring promotional campaign effectiveness. The bottom

line is that over and above the standard contact info, data

regarding markets, consumer behaviour, campaigns, products

and sales results should be fed into a business intelligence and

analysis system that can spit out behavioural insights. This is

when a database becomes valuable.

by Michelle Sturman

a database can actually become

a living entity which provides

valuable data that everyone is

able to use to suit their particular

purposes


27/60 25direct > 2007

geo-spatial technology[ ]

let maps show you the

right directionby Metse Phiega

initiatives. The technology also allows marketing directors to

narrow the target market down so that it fits into a certain

income bracket, gender and professional group.

This is the future of technology making the information

work for you. Marketing directors may also want to find new

clients (in addition to their existing client base) in a given target

market. This is accomplished by querying census and LSM

data. If they know what LSM group a product appeals to, as

well as the income bracket, age and gender of the target

market, they can find out where they stay.

Some targeted Geo-spatial marketing technology has the ability

to query the latest census and LSM information and display the

results on a thematic map. The map will show specific areas

where the designated income groups, genders and professional

groups live. Marketing directors are therefore able to use

the technology to be very specific and to obtain a detailed

representation of the customer profile in a designated area.

Using this information allows one to build a tactical and targeted

media and marketing campaign in order to reach the most

relevant target groups.

knock and dropA local retailer would also be able to use this technology to

narrow down an area based on age, gender, income and

professional group in order to target a Knock and Drop

marketing campaign. One could then accurately provide the

correct number of leaflets or pamphlets to be dropped off at

each townhouse or business complex.

As described above, those who are in the know are able to

use technology for their own benefit. Before comparing this

to the activities of a super-villain in a comic book, consider

that this kind of technology can allow businesses to expand

their databases through direct marketing, while saving time,

space and energy and most importantly money.

We are living in the information age an age that has

endless possibilities and opportunit ies. Technology has provided

us with a trip to the moon, as well as a video recording of

the event. It now allows us the opportunity to use maps to

help build businesses and economies.

Metse Phiega

brand manager, MarketScope

www.mapit.co.za

The world of business is, well, a cutthroat business. All companies

compete on the local or world stage and they all share the

same objective: increasing market share and prof itability. In

such a competitive world, many businesses are moving

towards the use of location-based data to more accurately

target promotions, field marketing and sampling campaigns.

It is the age of technology and those with the necessary

know-how rule the business world. Given the more recent

advancements, businesses are finding more intelligent ways of

reaching their current and potential customers. Traditionally

companies have employed a great deal of guesswork in

determining the LSM profile or demographic make up of an

area. This approach yielded limited success and usually felt like

shooting fish in a barrel. With the future on the doorstep,

technology now allows us the use of location-based information

to collect data and conduct direct marketing campaigns with

potential clients in specific areas.

While some ways of accessing information directly are

complicated, there is (thankfully) also a stress-less way of

doing so ie making technology work for you. By using

georeferencing in the application of digital maps and geographic

information systems, coupled with business and demographic

analysis tools, you can look at an area from a microscopic

perspective right down to the roof count of flats, townhouses

and residential estates in both formal and informal areas.

targeted geo-spatial marketingThe marketing director of a large automotive manufacturer is

preparing to launch a new vehicle. The company needs to know

who their customers are, as well as where they stay and how to

reach them. The old-fashioned way of accessing this customer

information is to read through and interpret mountains of paper

containing all the companys marketing research.

This is when technology is able to step in and make life a little

easier especially technology that allows you to convert data

into spatial information. By using it the marketing director will

be able to load proprietary company information such as the

position of all their dealerships, including those of competitors

and display their relative positions on a map. He/she can also

upload the residential information of past and current clients.

The information will be visually displayed, down to street level

detail. This knowledge allows marketing directors to see where

their client base is in relation to their competitors, which

facilitates planning when it comes to targeting marketing


28/6026 direct > 2007

customer strategy[ ]

customer

strategyCustomers are crucial to your profitability, regardless

of the type of organisation you are running. If

youre looking for superior profits, you need an

effective strategy that will enable you to under-

stand who your customers are, what it is they seek to buy

from you and how you will meet their needs.

Strategy is best defined by clearly stating where the company

wants to compete, how it will create value for its customers

and how it will generate profits. A strategy is required as it is

necessary to make intelligent decisions on where resources

need to be focused for value creation. Companies must

recognise that customers are not all created equal and that

some are more valuable than others. Its about designing

initiatives that are built on a real and deep understanding of

segments or groups of customers.

The development of a customer management strategy requires

a deep understanding of a number of interlinked/inter-related

practices. This article focuses on the Analysis and Planning

element of the Customer Management Assessment Tool

(CMAT), as well as on the customer management activity

area, which is characterised by Retention, Efficiency,

Acquisition and Penetration the REAP levers.

The CMAT that is illustrated in the diagram above assists in

defining current customer management competence, so that a

set of well-aligned initiatives that deal with building and

developing customer competencies across the entire organisation

can be designed.

analysis and planningExcellence in customer management begins with a deep

understanding of the nature and value (actual and potential)

of existing customers and potential prospects. This needs to be

supported by a robust strategy for managing them and should

include clear plans of the type of management activity that is

to be implemented for different types of customers. Determining

how these customers need to be handled to maximise

customer value is best done by focusing on the REAP levers.

retentionThe retention of good customers is one of the most cost-

efficient ways of driving profit in an organisation. In order to

reduce customer attrition in the future, it is essential to take a

close look at how you welcome and get to know your customer

and to examine the journey all the way from customer

involvement, to the rewarding of loyalty, to the last attempts

to retain customers just before loss and the management of

dissatisfaction. Simply retaining all customers at any cost represents

one of the largest areas of wasted investment in business.

efficiencyThe acquisition, retention and value development of customers

cannot be carried out at any price. If the cost of the activity

exceeds the value delivered to the organisation, profitability

will suffer. The management of efficiency, particularly in terms

of the cost of serving customers, is critical to making a profit,

even with customers that have minimal apparent value.

acquisitionWithout the planning and management of acquisition a

Direct magazine 2007

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