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Creativity in Direct Marketing
Marketing Week - SA
August 2008
ld e
  e O
Y       ct ng
    i
 D rkere ti
       a
    M ho    ds
      M  et
Web 1.0 1990’s

Web 2.0 2000’s
Web 3.0

...content in the context of target audience...
Welcome to direct marketing......
Welcome to DM 8.0
DM 1.0
DM 2.0
DM 3.0
Creativity In Direct Marketing
DM 4.0
Creativity In Direct Marketing
DM 5.0
Creativity In Direct Marketing
DM 7.0
Anything that can deliver a targeted message

          incite some desirable action

         and generate a response......




DM 8.0
All digital is direct.

               But not all direct is digital.
Test, learn, refine, roll-out.

Experiment, insight, optimise, roll-out.
quot;Half the money I spend on advertising is wasted; the
trouble is I don't know which half.quot;


                                               John Wanamaker
                                                        1838 - 1922
76% of marketers had no way to determine their return on
investment from their lead agencies.


                               Forrester Research, March 2007
“Advertising is the last bastion of unaccountable
spending in corporate America”
                                  Eric Schmidt, CEO, Google
Doing what you’ve always done

  will no longer get you what you’ve always got.
Applying a direct filter - today.
Components of direct


           Targeting   10%



         Proposition   30%




           Creative
          Execution    60%
Components of direct


     Execution             10%                  • Executional Excellence


                                                • What’s the single most important thing you
                                                  want to say to the customer?

    Proposition            30%                  • What’s the undeniable customer need that is
                                                  satisfied by our product benefit?
                                                • What do you want customers to do?


                                                • Who do you want to target? Why are they
                                                  right group for this offer?
                                                • What unifies them as a customer group – what
                                                  separates them from other potential customer
      Targeting            60%                    groups
                                                • When is the optimum time to reach them?
                                                • What is the clear indicator that identifies
                                                  them as being suitable for the product?

            Source: Drayton Bird – Common sense DM
And after 14 years of validation....

         Targeting     Proposition         Creative   Timing



                             5%
                       10%



                     20%


                                     65%
Targeting
Knowing - and finding - your audience

•   Existing
    •   modelling and analysis
    •   differential marketing strategy
•   Prospecting
    •   sources of data
    •   contribution of other media
Creativity In Direct Marketing
Differentiation




  Value

                  X


                      Engagement
Differentiation



                  C            D ?

  Value


                           B


                  Engagement
Creativity In Direct Marketing
An interesting way to develop geo-demographic insights
Creativity In Direct Marketing
Creativity In Direct Marketing
Creativity In Direct Marketing
Creativity In Direct Marketing
Creativity In Direct Marketing
Don’t count the customers you reach.
                   Reach those who count.
Proposition
Brand ambitions are not value propositions.
Propositions

•   Vitally important to encapsulate the purpose

•   If all else fails it could run as the headline

•   Can the essence be conveyed in one word?
Messaging

•   Clear and single minded

•   Easily understood

•   Relevant, relevant and relevant

•   The recipient knows exactly what to do

•   Appropriate use of disclaimers!
Creativity
American Express “Centurion”
American Express “Centurion”
Lenovo “Get Angry”
Lenovo “Get Angry”




Lenovo “Get Angry”
Creativity In Direct Marketing
Lenovo “Get Angry”
Royal Mail - Chocolate Letter
MyerOne Launch
Guide Dogs “Collar”
Creativity In Direct Marketing
Virgin Travel “Atmosphere”
Royal Mail - Philatelic
Creativity In Direct Marketing
CDM3. Dimensional Mail
                                                                  COMMONWEALTH BANK,
                                                                  ‘CAKE’
                                                                  PROBLEM:
                                                                  In order to get a higher interest rate on their funds, many Commonwealth
                                                                  Bank business customers were parking their company’s cash reserves in
                                                                  high-interest accounts with other financial institutions.
                                                                  Commonwealth Bank set the target of convincing 5% of these businesses that
                                                                  they could keep their money with CBA and still achieve a high interest rate
                                                                  (7.25% with the Business Online Saver account). However, Financial Controllers
                                                                  of these businesses are notoriously dismissive of marketing communications.


                                                                  SOLUTION:
                                                                  We worked in conjunction with local bakers from around the country to send
                                                                  these Financial Controllers something that would get their attention and help
                                                                  celebrate the great interest rate we were offering – a cake!




                                                                  RESULTS:
                                                                  This mailing achieved a 15.62% conversion rate, which saw an incredible
                                                                  $14,068,862 swept into Commonwealth Bank’s Business Online Saver accounts.
                                                                  This campaign represents an amazing return on investment of 472%!
                                                                  (And above all, we were able to avoid using any clichés, like ‘getting a bigger
                                                                  slice of the pie’, ‘proof is in the pudding’, and ‘a piece of cake’. That’s what we
                                                                  call having your cake and eating it too.)




    Please Note: Due to this pack being of a perishable nature,
           we were unable to supply an actual sample.




Commonwealth Bank - “Cake”
AA - Hitch-hiker
GradManager.com
GradManager.com
Creativity In Direct Marketing
Creativity In Direct Marketing
Creativity In Direct Marketing
Creativity In Direct Marketing
Things to do - today

•       Be specific in who you talk to
    •     don’t count those you reach - reach those who count

•       Talk to fewer people to get greater results
    •     apply differential strategies based on value to the business

•       Think differently about the opportunities and the market
    •     doing what you’ve always done, won’t get you what you’ve
          always got

•       Use a range of channels for impact
When the market gets tough...


                         the smart go direct.




Phil Smith
phil@ideagarden.com.au

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Creativity In Direct Marketing

  • 1. Creativity in Direct Marketing Marketing Week - SA August 2008
  • 2. ld e e O Y ct ng i D rkere ti a M ho ds M et
  • 3. Web 1.0 1990’s Web 2.0 2000’s
  • 4. Web 3.0 ...content in the context of target audience...
  • 5. Welcome to direct marketing......
  • 16. Anything that can deliver a targeted message incite some desirable action and generate a response...... DM 8.0
  • 17. All digital is direct. But not all direct is digital.
  • 18. Test, learn, refine, roll-out. Experiment, insight, optimise, roll-out.
  • 19. quot;Half the money I spend on advertising is wasted; the trouble is I don't know which half.quot; John Wanamaker 1838 - 1922
  • 20. 76% of marketers had no way to determine their return on investment from their lead agencies. Forrester Research, March 2007
  • 21. “Advertising is the last bastion of unaccountable spending in corporate America” Eric Schmidt, CEO, Google
  • 22. Doing what you’ve always done will no longer get you what you’ve always got.
  • 23. Applying a direct filter - today.
  • 24. Components of direct Targeting 10% Proposition 30% Creative Execution 60%
  • 25. Components of direct Execution 10% • Executional Excellence • What’s the single most important thing you want to say to the customer? Proposition 30% • What’s the undeniable customer need that is satisfied by our product benefit? • What do you want customers to do? • Who do you want to target? Why are they right group for this offer? • What unifies them as a customer group – what separates them from other potential customer Targeting 60% groups • When is the optimum time to reach them? • What is the clear indicator that identifies them as being suitable for the product? Source: Drayton Bird – Common sense DM
  • 26. And after 14 years of validation.... Targeting Proposition Creative Timing 5% 10% 20% 65%
  • 28. Knowing - and finding - your audience • Existing • modelling and analysis • differential marketing strategy • Prospecting • sources of data • contribution of other media
  • 30. Differentiation Value X Engagement
  • 31. Differentiation C D ? Value B Engagement
  • 33. An interesting way to develop geo-demographic insights
  • 39. Don’t count the customers you reach. Reach those who count.
  • 41. Brand ambitions are not value propositions.
  • 42. Propositions • Vitally important to encapsulate the purpose • If all else fails it could run as the headline • Can the essence be conveyed in one word?
  • 43. Messaging • Clear and single minded • Easily understood • Relevant, relevant and relevant • The recipient knows exactly what to do • Appropriate use of disclaimers!
  • 48. Lenovo “Get Angry” Lenovo “Get Angry”
  • 51. Royal Mail - Chocolate Letter
  • 56. Royal Mail - Philatelic
  • 58. CDM3. Dimensional Mail COMMONWEALTH BANK, ‘CAKE’ PROBLEM: In order to get a higher interest rate on their funds, many Commonwealth Bank business customers were parking their company’s cash reserves in high-interest accounts with other financial institutions. Commonwealth Bank set the target of convincing 5% of these businesses that they could keep their money with CBA and still achieve a high interest rate (7.25% with the Business Online Saver account). However, Financial Controllers of these businesses are notoriously dismissive of marketing communications. SOLUTION: We worked in conjunction with local bakers from around the country to send these Financial Controllers something that would get their attention and help celebrate the great interest rate we were offering – a cake! RESULTS: This mailing achieved a 15.62% conversion rate, which saw an incredible $14,068,862 swept into Commonwealth Bank’s Business Online Saver accounts. This campaign represents an amazing return on investment of 472%! (And above all, we were able to avoid using any clichés, like ‘getting a bigger slice of the pie’, ‘proof is in the pudding’, and ‘a piece of cake’. That’s what we call having your cake and eating it too.) Please Note: Due to this pack being of a perishable nature, we were unable to supply an actual sample. Commonwealth Bank - “Cake”
  • 66. Things to do - today • Be specific in who you talk to • don’t count those you reach - reach those who count • Talk to fewer people to get greater results • apply differential strategies based on value to the business • Think differently about the opportunities and the market • doing what you’ve always done, won’t get you what you’ve always got • Use a range of channels for impact
  • 67. When the market gets tough... the smart go direct. Phil Smith phil@ideagarden.com.au