Many marketers are faced with dwindling budgets or pushed by their CEOs to maximise response from the budget they have. To stretch the budget, marketing departments try to create a one-size-fits-all message. This is wrong on so many levels.
I personally have received communications from sporting organisations telling me to get the children I don’t have, doing more sport. And retailers offering me 25% discount on the latest ladies fashion. These are communications I am never going to respond to. What's more, I had completed an online survey to tell the sporting organisation that I (Mr. Hecht) am interested in rugby, swimming and athletics, I’ve even bought discounted rugby tickets from them before!
This approach of one-size-fits-all is harming the advertising industry. Particularly Direct Marketing which is a lot more sophisticated than other forms of advertising in terms of consumer knowledge. Television ads appear to be more targeted than some of the Direct Communications I have received – often aired between programmes that draw in a very targeted audience.
So how can we fix this? There are a few quick and easy solutions. Using what you know about your customers. For example, I only ever buy menswear, so send me a catalogue that contains only menswear. Retail companies could save by only printing 50% of the catalogue, the savings they make in print costs alone can be used to hit a bigger audience. The more sophisticated approach is to segment your database. Segmentation uses multiple bits of information about your customers rather than just one bit of information. Your messaging can now start to include cross sell messages – the idea is that by grouping people who have similar purchasing patterns together, you can sell them other related products that they may not have yet bought. Time and time again when we have put this strategy into place, we have been able to increase response by:
- Reducing cost on print material and therefore increasing the audience budget
- Sending people relevant messaging and therefore making the decision to buy clear
- Removing the waffle in communications and getting straight to the point
To find out more about how Marketing Metrix can help you with segmented messaging
and other marketing strategies, call Grant on 02034638608.