Tag Archives: reaching consumers at home

Value Beats Ad Clutter Every Time

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Front-Door Marketing Bypasses a Crowded Media Landscape to Meet Your Best Customers at Home 

With the onslaught of brand messages permeating nearly every facet of life, why do marketers think more of ‘the same old same old’ is a good idea? It’s misguided to say that the means to beat ad clutter is to just distribute more and more of it. 

Instead, why not increase the effectiveness of underused, grassroots channels to deliver value? Savvy marketers—and savvy customers—are becoming well aware of the front door as valuable real estate in this effort. No barriers remain at the front door, and newfound abilities to target effectively have evolved this channel into a conduit for brands to deliver VIP treatment that equates to value and drives response. A recent PowerDirect article in Marketing News, an online publication of the American Marketing Association, details this phenomenon and highlights the targeting strategies that are fueling highly effective front-door marketing today.

More than ever before, being heard has to do with delivering value. And achieving this demands an understanding of what makes an audience tick, and ultimately acknowledges that relevance and value are what fuel long-term customer relationships with specific products and services. Do your campaigns focus on delivering value as a priority?  What are you doing to demonstrate an understanding of what your best customers need and expect from their favorite brands?

 

Hitting the Target Requires Careful Aim

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Reaching the Right Prospect Where They Live

High-quality physical media, eye-catching creative and an attractive offer are essential factors in the world of direct marketing; however reaching the most appropriate targets is the key to success – and perhaps the most tangible advantage of front-door marketing.  After all, a great offer presented skillfully means little if it doesn’t get into the right hands…

Proper data research, analysis and application are essential factors in direct marketing, representing a proven analytical approach that dramatically impacts success rates. Thoughtful analysis enables development of target groups that consider not only who your prospects are, but where they live and the likelihood that they will purchase a particular product or service. 

PowerDirect's targeting and distribution starts at the block group level.

With PowerDirect, this deeper level of analysis goes into every front-door marketing campaign, identifying the best prospects for a client’s product or service and then using that information to develop the best distribution strategy.  Geo-demographic clustering information along with other sophisticated data is used to identify and segment the best prospects.  These groups can be targeted in much smaller units, using “block groups” of about 400 households rather than entire zip codes.  Further, advanced mapping technologies enable detailed visualization of the delivery area, supported by GPS technology that verifies the when and where of delivery execution. 

Are you taking advantage of sophisticated targeting tools – and reaching the best prospects with the right messages delivered directly to their front door?

Deal of the Day?

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Random Deals Have Their Place – But Targeted Offers are Often the Better Deal, Both for Consumers and Major Brands

Groupon's deep-discount model is enticing, but offers are not always relevant.

The appeal of a deal that is just too good to pass up can be, well, difficult to pass up. And a new one every day may sound great in theory – but that sweet price break is not always a highly relevant offer. More accurately, it is rarely relevant.  Daily deal websites such as Groupon, Living Social and Gilt may entice the saver in all of us, but as they fill up email boxes, text messages and Facebook pages, the subscriber may begin wondering what they really signed up for.

From the marketer’s perspective, Groupon charges a comparatively high percentage of the pre-paid coupon’s face value.  This model is only ideal when the marketer’s product has a very high margin (like services such as spas) or needs brand awareness that is too costly to develop through other channels (e.g. small, unknown, local businesses). Larger retailers such as restaurant chains, major retailers and brand manufacturers have slimmer margins, are better known and just don’t need to widely offer such deep discounts.

Are there better options? While daily deal sites are still proving their usefulness, there are alternatives that are highly targeted, provide significant value and cost the consumer nothing up front.  One such method is front-door media – used by major brands like McDonalds, Kohl’s, Home Depot and Best Buy to bypass the mailbox and get the right message of value directly into the hands of their target shoppers. Similar to the daily deal sites, the discounts are significant – often in the neighborhood of 50 percent off or more – but unlike those sites, the offers are highly targeted and meant for the recipient based on a variety of factors such as demographics, lifestyle segmentation, consumer behavior, ethnicity and consumer buying power. Front-door marketing is not a new tactic, however it’s more sophisticated than ever, and effectively poised to drive traffic and purchase decisions as part of an overall marketing program.

Are you considering new, untargeted and unproven methods to increase sales? Will the end result warrant the investment? Shouldn’t a major brand like yours be speaking directly to your customers with branded offers delivered directly to the front door?

Are QR Codes the Next Big Thing in Shopper Marketing?

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Still in its infancy here in the States; major brands see the potential of the technology

In this week’s issue of AdAge, reporter Natalie Zmuda writes about QR Codes Gaining Prominence, with the likes of Target, Best Buy, Macy’s and Post Cereals embracing the technology.  A pretty impressive group to be sure – but just the tip of the iceberg as the technology gains greater acceptance through a concerted effort to educate the consumer.

PowerDirect's own QR code points prospects to our website.

Originally used for tracking parts in vehicle manufacturing, QR (or quick-response) codes are becoming more widely used in marketing for a broad range of brand initiatives that provide mobile access not only to special offers and discounts, but also to more informative content such as product ratings and reviews, How-To guides and product-specific videos.  These two dimensional barcodes are appearing anywhere and everywhere – on billboards, in-store displays, event ticketing and tracking, business cards, print ads,  direct mail campaigns, websites, email marketing, and couponing. Marketers are realizing that the possibilities are endless.

Front-door media is yet another ideal medium for QR code implementation – providing a way to influence shoppers early on their path to purchase, supporting shopping decisions and lists made in the home with high-value offers delivered directly to the front porch.  For example, imagine bypassing the mailbox and the other clutter of a prospect’s daily life and delivering a branded message along with a product sample or a special offer to the front doors of a targeted group of prospects.  On this marketing piece is a QR code that takes the customer to a website where they can quickly view the product in action, learn more about it and even purchase it online. Perhaps the QR code takes the customer to an added incentive meant to drive traffic to a brick and mortar retail location.  Working with other pieces of the marketing program, this delivery method adds a personal touch and incentive the consumer’s brand experience.

Have you been eager to test QR codes as part of your overall strategy? Are you looking for the ability to measure response rates with a high level of accuracy? Are you ready for a simple, inexpensive way to explore the potential of QR codes?  Front-door marketing may be just the ticket.

Shopper Marketing Starts at Home

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Shopping behaviors and priorities may be far more complex than once thought, developing and evolving over time and inspired by any number of needs and wants

Shopper marketing was once thought of as a purely in-store experience, with specific outreach to consumers as they browsed aisles in an effort to close the deal.  But marketers today are recognizing that shoppers arriving in the store are not completely blank slates waiting for the right marketing message to move their purchasing decisions.  Much of their motivation to purchase starts at home and for any number of reasons – from needing to feed a picky child, planning a party, redecorating a home, or simply restocking a thinning pantry with familiar items.

Cause and effect is at the core of shopper marketing, and this includes both in-store and out-of-store motivations.  The right channels and messages are essential, and turn shopper marketing into a science for delivering value to the right customer at the right time. This in turn has renewed a focus on the path to purchase, a circuitous route to shopping decisions. Many more opportunities exist than meeting a shopper in a grocery or retail store aisle.

copyright © 2010 sean dreilinger

For example, children may open their favorite toy at home to find a promotional pamphlet introducing a new character… ‘We know you love Thomas the Tank, so meet Emily the Engine.’  Since they watch Thomas on satellite television or Netflix, they may start to seek out Emily or even ask for her as the next toy resident in their version of Thomas’ fictional Island of Sodor. Mom or Dad puts this on their list and it becomes a priority shopping trip, largely based on events that took place in the comfort of their own home. Add to that a front-door delivered coupon from a major toy retailer or mass merchandiser with savings off of any Thomas the Train toy, and Mom or Dad is effectively incentivized to visit that retailer.

Front door media is uniquely suited to influence shoppers at this early stage on their path to purchase, supporting shopping decisions and lists made in the home with high-value offers delivered to the front door. Are you reaching your best customers at home, layering front door tactics onto your overall shopper marketing strategies?  And if not, what are you doing to reach your target audience as they are forming lifetime associations with products and behaviors?

Retailers Ride Holiday Growth Wave into 2011

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Retail momentum continues, as consumers’ desire for discounts is fueling promotions and shopper incentives

Retailers were generally pleased with the 2010 holiday season, seeing 5.7 percent growth over 2009 and handily beating initial projections by the National Retail Federation.  In fact, the NRF further says that January marks seven straight months of retail gains, demonstrating that many consumers are ready to spend after a long and difficult economic slump. It’s a winning situation for consumers – retailers are anxious to maximize this upswing and are upping their game with continued promotions and discounts. 

Good news for shoppers who have come to expect some level of competition for their spending power. Their expectation of value is rock solid and increasing the pressure on retailers to deliver.  For retailers it is a bit trickier though, and marketing efforts must break through the barrage of promotional activity to really get the consumers’ attention as they travel the path to purchase. Shoppers have become savvier about sifting through their options – comparing prices and demanding value as they prioritize their spendable income.

In turn, marketers are layering additional tactics onto established and successful retail marketing strategies.  Capitalizing on what they already do well – such as developing incentives that demonstrate real customer understanding – marketers are raising the bar by adding underused channels such as front door marketing into the mix.  Bypassing a crowded field of messages, retail marketers are in some cases exceeding a 20 percent response rate.

Are your retail marketing initiatives generating the results you need, especially as Americans seem to be stepping out of their years-long spending slump? And if not, what are you doing to expand on your campaign strategies?

The Path to Purchase Starts at Home, During the Holidays and Year-Round

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The Search for Value is Not a Linear Process, with Consumers Making Shopping Decisions Every Day in Every Way

Consumers consider brands as they move through a variety of daily events such as walking through a store, or even non-events such as opening the pantry door.  With major retailers referring to the path as a circle, a pool or even a puddle, it’s dramatically clear that it is neither linear nor defined by a particular channel.  The path to purchase is a big picture opportunity for retailers, fueled by mobile, digital, social, radio, television and print media – and advantage goes to markets using multi-channel strategies to layer messaging and offer consumer value all along the path.

A recent survey by retail industry analyst E-tailing Group confirms the consumer’s focus on value, indicating that merchants must get creative as almost half of shoppers will refuse to pay full price this holiday season.  Further customer service and promotions are heavily favored, and 39 percent of shoppers plan to complete most of their holiday shopping by early December (an increase over last year’s 34 percent.) Savvy marketers have recognized these factors as advantages for offering relevant information to the shopper early in the process, meeting expectations of brand value, keeping them informed and becoming part of the research and ritual of making shopping decisions.

Further, news from IDC Retail Insights points out that ‘sequential use of multiple channels’ by consumers will shift to ‘concurrent omnichannel behavior’ – meaning that new options such as mobile price research weakens the retailer’s immediate influence on purchase decision made right at the product shelf.  Brands that answer back with “three-dimensional selling,” working to solve a customer problem rather than sell a product, are on the right track by offering high value to reinforce greater brand appreciation earlier in the shopping chain.  The consumer may not necessarily care about which entertainment provider they use, rather they are more interested in the cost, availability and convenience enabled by their various options.

The path literally encompasses all aspects of shopping, from considering needs, evaluating brands, comparing prices, researching options and listening to recommendations from trusted friends.  For marketers, influencing customer choices involves strengthening the connection that comes to mind in each of these instances.   Reaching consumers early on the path maximizes the opportunities for shopper connections – whether it’s planning dinner, making a shopping list or just realizing the kids need new shoes.

Does your marketing strategy recognize the limitations of a linear view of the path to purchase? And are you doing enough to reach your customer early in the cycle, offering value and resonant messages that can linger for extended consideration and response?

Retailers are Getting Their Piece of the Holiday Pie with Deep Discounts

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Black Friday Encourages Retailers to Keep Those Deals Coming

Disappointing retail results for the past several holiday seasons have led to sales and specials that go well beyond the hype that is ‘Black Friday.’ The lines have definitely been blurred with prices slashed throughout the months leading up to Christmas.  This aggressive effort seems to be paying off this year with retail traffic up significantly. 

In fact, recent survey results from the National Retail Federation show that 212 million shoppers visited stores and websites over the four day-long Black Friday weekend, up from 195 million last year. In addition, people spent more, with the average shopper shelling out $365.34, up from last year’s $343.31. And total weekend spending reached an estimated $45.0 billion.  These figures don’t even take into account the 37.2 percent of Americans who planned to begin holiday shopping before Halloween.

To get the attention of today’s consumer, retailers are taking advantage of the myriad channels available to them.  Print, online, television, direct mail – ads are coming at us from every direction.  It’s all good but it can get confusing and many times it’s in one ear, out the other. One under-utilized marketing channel is rising above the noise though, demonstrating significant success for major brands across the country.  These retailers have committed to reaching the right customers with ‘too good to miss’ offers delivered right to the front door. 

The front door is an ideal meeting place – uncluttered, highly visible and primed for action. And today’s front door marketing brings value to a precisely defined audience, with measurable results enabled by technology-based processes.  Certainly, the right message combined with a compelling offer receives more consideration in the comfort of the home where consumers are relaxed, more responsive and making their shopping plans.  It’s a channel that’s working for major retailers around the country. Are you doing all you can to reach your customers to drive holiday traffic with special discounts meant just for them?

Customers Seek Value Now More Than Ever, and Brands Must Get on Board

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Consumer behavior has changed dramatically and smart marketers are paying attention.  Seeking value as a priority, paying cash for necessities, foregoing credit cards, searching for discounts and putting money in the bank have become the norm thanks to the recent recession. Spending is more cautious, with consumers looking for deals, using coupons and actively focused on getting the most for their money.  And while the recession may officially be over, some economists say many of these changes in spending habits, initially seen as temporary, have taken hold for the long haul.  The 2010 Nielsen Economic Current states “value remains the mantra and the new normal is characterized by restraint.” The report also indicates that shoppers across the U.S. and Canada are cutting back on trips to the store, seeking value and balancing their purchases with a mix of branded and store brand items. This economic trend represents a significant opportunity for marketers, going beyond the sole purpose of grabbing someone’s attention, and instead delivering usefulness and value. 

Further, internet research firm Burst Media recently surveyed more than 4,500 women, age 18 and older, concluding that coupon use, in both the online and offline world, is growing.  In fact, nearly one-third (32.4%) of respondents consider themselves ‘frequent’ coupon users and one-third (34.0%) are using coupons more frequently today than they were six months ago.

High value offers characteristic of front door marketing strategies may fill a gap here – demonstrating a brand’s understanding of customer needs, while meeting a customer’s expectations of value. If it’s all about the getting the right offer on the right door, today’s creative front door media can make a high value offer stand out.  Gift cards, sweepstakes, tear-off offers, and sensory marketing with sound, scent or taste are available media options and represent a dramatically personal approach suited for major brands seeking to offer special treatment to their best customers.

If customers have high expectations of value from their favorite brands, what are you doing to deliver VIP treatment to their front door? Is your offer high value enough to walk through your customer’s front door as a welcome visitor?

For Retailers, Black Friday is Not a Shopping Day but a Shopping Season

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Over the past several holiday seasons retailers may have rung in less-than impressive sales but this year they are determined to turn things around.  In fact, the National Retail Federation projects that 138 million shoppers are expected to hit stores Black Friday weekend, representing an increase over 2009 estimates. Further, retailers are making the most of this as a ‘shopping event,’ asking themselves why just a single day of Black Friday deals, when a full season of ‘Black November’ offers may be just what this economy needs…

With most consumers still feeling the crunch of the recent economic downturn, many of us really are eager for a bargain, or two, or many, many more.  People are using credit less, paying cash and looking for discounts wherever possible; many retailers are smart to up the ante with earlier sales and many more deals that are expected to extend right up to Christmas day.  This elongated shopping cycle gives consumers the means to make responsible purchases, with the added bonus of boosting retail profits for Q4.  

Some marketers have initially reasoned that this could dilute the power of the day itself; others see it an opportunity to capitalize on shoppers’ ability to making decisions, shopping lists and even purchases in a much more relaxed, comfortable atmosphere than a single frantic Friday or long pre-holiday weekend.  NRF stats from last year prove that 40 percent of shoppers started holiday shopping before Halloween, much less November.  The trick for retailers is to capture a shopper’s attention early in their holiday gift planning phase, and capitalize on their extended decision-making process.

Front door marketing strategies are uniquely applicable in this environment, delivering a highly targeted brand offer in the uncluttered, private environment of the front door. Brands are reaching their best customers early on the path to purchase and making the most of their ability to evaluate and respond to competitive brand offers.  Offers made here are typically very high-value, with brands recognizing this as a requirement to be invited into a consumer’s home.

If Black Friday is now Black November, don’t you want your best – and perhaps most elusive – customers to have the chance to see, touch and share your offer around the house before the big shopping day arrives?