Archer Targeted Communication - ArcherTC.com» Marketing

Marketing to Muslims poses a challenge for retailers

ArcherTC — Wed, 02 Jun 2010 11:46:44 +0000

Leafing through a Best Buy flier over the holiday season, Celena Khatib spotted a small greeting near the bottom of the page: “Happy Eid al-Adha.”

The good wishes for the important religious holiday celebrated by Muslims seemed a milestone in U.S. marketing. “I finally felt that they are recognizing Muslims like we are a part of this community,” said Khatib, 31, a suburban Detroit mother of two. “We live here, we spend our money here.”

But on Best Buy’s website, people around the country posted contrasting views. “You insult all of the heros and innocent who died 911 by celebrating a holiday of the religion that said to destroy them!” wrote one. Many others said they would no longer shop at Best Buy.

The controversy underscores the continuing obstacles that retailers and other companies face in marketing to a U.S. Muslim population estimated at more than 2.3 million by the Pew Research Center.

Flickr photo credit: al-Taqi [feeling surrealistic]

Design Your Customers’ Decisions

ArcherTC — Thu, 27 Aug 2009 10:16:39 +0000

There is a vital lesson buried in the August 19, 2009 Jet Blue announcement that they were suspending sales of the $599.00 “All You Can Jet” promotion they’d debuted only seven days before. Any student of Behavioral Economics could have predicted that an “all you can eat” approach would inspire vastly different behavior than if Jet Blue had charged a lower fixed fee plus $1 per mile. Similarly, over a decade ago when AOL switched to a usage-independent flat price, connection time increased four times more than they anticipated.

“All you can eat” is an entirely different price than “very, very cheap.”

Traditional economics says that lowering the marginal price from $2 to $1 should have a similar effect to lowering it from $1 to $0 — but experience and experiments have both shown that the traditional demand curve acts in an odd manner when we reach $0 marginal cost. Jet Blue’s executives should have known better. But the Jet Blue management team is not alone.

Many executives assume their customers are more rational than they really are. For example, most leaders believe in enhancing the options given to customers, but increased choice can actually freeze decision-making by overwhelming the shopper. Excessive options is a key reason that an average of 60% of all online shoppers abandon their purchases mid-stream.

Flickr photo credit: pawpaw67

Direct Mail Done Right

ArcherTC — Mon, 22 Jun 2009 18:00:38 +0000

When it comes to direct mail, success can be measured in a variety of ways besides straight ROI — although raising response is, of course, the bottom line. For instance, did the piece grab attention? Did its design help it get past the gatekeepers? Or, was the mailing particularly cost-efficient? Did it help increase customer loyalty? These are the factors that came into play for the following three successful direct mail campaigns. A b-to-b campaign, a campaign touting an education nonprofit and a mailing strictly for high-end luxury auto enthusiasts may not initially seem to have much in common. But they are all efforts that effectively used direct mail in creative and thoughtful ways.

Cost-savings savvy

As an education nonprofit that relies on federal and state funding to survive, the National Board for Professional Teaching Standards (NBPTS) was looking to cut down on direct mail campaign costs, which — while mail remains an essential marketing channel for the organization — can be prohibitively expensive.

For a mailing promoting a conference that targeted 74,000 national board certified teachers, director of marketing Elizabeth Arritt had an idea of how to cut down on the number of mailers sent out: “We were already planning e-mails and mailings and I thought, why am I e-mailing all these people and then mailing something when I can tell exactly who opened the e-mail?”? …read more of this article at Direct mail done right – DMNews, published 18 May 2009

Flickr photo credit: ignescent infidel

E-mail Newsletters That Customers Actually Read

ArcherTC — Wed, 20 May 2009 18:10:57 +0000

I recently received an e-mail that had me riveted from start to finish. It contained a true story about two men aboard US Airways flight 1549—the one that crash-landed into the Hudson River. Both passengers had regularly backed up their critical computer data. One did this by transferring info from his hard drive to a second computer, but he had taken both laptops on the plane. The other passenger had used an online backup service called Mozy (owned by EMC). I read their stories in the monthly Mozy newsletter, which I chose to receive when I signed up for Mozy myself. It’s full of fun, interesting, and valuable stories and tips.

During a recent interview, Dave Robinson, Mozy’s vice-president of marketing, explained how any business owner can make an e-mail newsletter more compelling. I also spoke with Janine Popick, chief executive of VerticalResponse, an e-mail and direct marketing provider for small businesses. Here’s their advice on how to get customers to read your e-mail newsletters. Read more of this article at E-mail Newsletters That Customers Actually Read – BusinessWeek, published 4 May 2009.

Flickr photo credit: kin-ichi

Sweet Returns

ArcherTC — Mon, 27 Apr 2009 18:20:49 +0000

An upscale pastry store thrives by finding new markets

As the economy began to deteriorate in early 2008, a few things became clear to Gary Gottenbusch, owner of Servatii Pastry Shop & Deli Inc. in Cincinnati: Customers were purchasing smaller items in an effort to be frugal, and soaring prices for flour and other commodities were threatening to eat into his profits.

A trained baker whose family has been in the bakery business for decades, Mr. Gottenbusch knew the danger the situation posed to his small business, which sells upscale European cakes like Vienna tortes, along with more common fare such as cinnamon bread, at 10 retail locations in and around Cincinnati.

“My overhead was totally fixed, and I knew if I lost my sales, I would lose the profitability,” says the 44-year-old Mr. Gottenbusch. “It was time to be aggressive in getting more volume.”

Chef David Burke is known for his creative cuisine. Now he’s using that same creative approach to weather a downturn in dining out. He talks with WSJ’s Beckey Bright about his strategy.

So, instead of hunkering down and hoping the economic downturn would be short-lived, Mr. Gottenbusch reinvented his business. With the help of the Manufacturing Extension Partnership, a program partially funded by the Department of Commerce and designed to give small firms access to manufacturing specialists and other advisers, Mr. Gottenbusch looked for new customers in unusual places, created unique products to drive store traffic, joined a purchasing association to keep costs in check and took advantage of the real-estate slump to scoop up a new store location on the cheap.

The result: Servatii not only survived last year, it thrived, with sales rising 15% to $8.5 million. …read more at Sweet Returns – Wall Street Journal, published 23 April 2009.

Photo credit: servatiipastryshop.com

Boost Your Brand

ArcherTC — Mon, 06 Apr 2009 18:15:04 +0000

How to find the perfect pitch person to get your message out

Inventor Michael Boehm’s instincts told him the concept he had been shopping to various manufacturers—-a portable contact grill that cooks food items faster and more healthfully-—had great promise. So why couldn’t he find a corporate partner to help take the product to market?

It was 1993, and Boehm had spent a year fruitlessly searching for someone to buy into his idea. Rather than back-burner the grill, he decided what the concept needed–not only to land corporate backing but to resonate with consumers–was some star power.

The rest, as they say, is history. Boehm targeted boxer George Foreman to be the spokesperson for the concept. “I knew he ate two burgers before every fight and that he and his sons were all burger freaks,” he says. “To me, he was a perfect fit to represent the product.”

After checking out a prototype of the grill, the Foreman camp agreed it was a good match, and the heavyweight signed on to represent the product. Soon thereafter, with Foreman’s muscle behind the grill, Boehm found a company, Salton, to take it to market. Now, 14 years after Salton rolled out the George Foreman Grill, it has sold a whopping 100 million units.

The Foreman grill has become a textbook example of how enduringly valuable a high-profile spokesperson can be when that person is carefully selected and wisely deployed in the scheme of a marketing strategy. …more at Boost Your Brand – Entrepreneur.com, published 2 April 2009.

Flickr photo credit: pdicko

Recession Pricing Strategies – How Low Can You Really Go?

ArcherTC — Mon, 30 Mar 2009 18:00:02 +0000

Tempted to cut prices? You’re not alone. With slumping sales, many businesses have been quick to offer discounts. “Cutting prices is by far the easiest marketing technique you can use,” says Frank Luby, a partner in Simon-Kucher & Partners, a pricing and marketing consultancy. But price cuts raise some tough questions: Will deep discounts cheapen your brand? Once you cut prices, can you raise them again? How do you deal with narrower margins? Says Luby: “I try to get my clients to think about where they want to be as a brand when things turn around.”

Here are three companies that made big pricing changes and the results of those decisions.

Wooing Recessionistas

Jeremy Shepherd started to get concerned last summer. The founder of PearlParadise.com, an online retailer in Los Angeles, Shepherd noticed that sales of high-end pearl necklaces were slipping, and he worried that might foreshadow a dismal holiday season. The company relies on sales of $1,000 to $5,000 pearl necklaces during the crucial end-of-year months, which typically account for about 40 percent of annual sales. But though Web traffic was up, many customers were favoring jewelry priced well under $1,000.

Instead of promoting his higher-priced items, Shepherd decided to boost sales by appealing to his customers’ thriftiness. He created a “luxury for less” campaign and priced his strands of Tahitian pearls, which usually sell for $500 to $700, at $300 each. Then Shepherd spent $75,000 to promote the sale. He also revamped his website, placing lower-cost items on the home page.

Orders began to pick up. …read more at Recession Pricing Strategies – How Low Can You Really Go? – at Inc.com, published 1 March 2009.

Flickr photo credit: Harpersbizarre

Getting It Wrong

ArcherTC — Thu, 26 Mar 2009 18:50:37 +0000

In 2008, entrepreneurs Chris DiMambro and Keith Dupuis sought to upscale their Main Street Grill, a sports bar and family style restaurant in Weymouth, Massachusetts. Their $48,000 risk–in seemingly positive changes that included an expanded menu, flowers on the table, linen napkins, and even new salt and pepper shakers–so angered their regular customers that, after 9 months, the pair had to acknowlege a flop. Disheartened by the empty seats, angry customer letters, and a 15 percent drop in revenue, the two look back in this MSNBC video to what went wrong and the lessons learned. Says MSNBC in summary, “to keep the customers you have, you need to be in touch with what they’re looking for.”

See the video below and a related, more positive piece from the Boston Business Journal, 3 February 2009.

Flickr photo credit: gregs stuff

A crash course on postal and e-mail list testing

ArcherTC — Mon, 09 Feb 2009 09:30:34 +0000

Give a pop quiz to most direct marketers on postal list testing and you’ll find an incredibly knowledgeable group of professionals. Give a similar quiz to the same group on e-mail list testing, and the score may be entirely different.

Just like the proverbial apples and oranges, postal lists and e-mail lists are just not the same when it comes to testing.

Individual knowledge about the nuances of each type of file is essential to a successful outcome. While it’s impossible to cover everything that separates these two direct marketing list tactics, here are some vital tips to make smart list choices for the fourth quarter and beyond. …more at A Crash Course on Postal and E-mail List Testing – Directmag.com, published 24 Nov 2008.

Flickr photo credit: k.tommy

Churches use novel approaches to attract members

ArcherTC — Wed, 17 Dec 2008 14:54:11 +0000

THIS time of year, advertising is filled with religious imagery. But typically, little of it is actually sponsored by religious organizations. That is starting to change as churches seek to take advantage of the seasonal opportunity to communicate with prospective members.

The change comes as anecdotal evidence suggests that the worsening economy may be sending more people to churches, synagogues and other houses of worship as financial setbacks bring some to their knees — at least figuratively.

Denominations like the United Church of Christ have tried advertising before, running campaigns that play on the unexpectedness of encountering a pitch for religion amid more prosaic spiels for soup, soap and soft drinks… read more at Advertising – Churches Use Novel Approaches to Attract Members – NYTimes.com.

Flickr photo credit: wallyg