How to identify and reach new customers at the lowest possible cost presented by Ian Heptonstall www

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How to identify and reach new customers at the
lowest possible costpresented by Ian
Heptonstall www.btob.co.uk
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• The day . . .
• We will examine this morning
• How - to identify your target customers as groups
• Methods of how you reach customers
• How - to identify your individual customers
• We will examine in this afternoon
• Content - what you say
• Form - how you say it
• Techniques - to increase response

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• The marketing cycle

Planning
Measure
Implement
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• The building blocks

Vision
Plan
Segment
Communicate
Measure
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• Identifying your customers

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• Identifying your customers
• Business type (SIC codes)
• Location (postcodes)
• Size
• Budget
• Job function
• Named person
• Purchasing history \ responsibility
• Mail responsiveness

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• Identifying why your customers use you

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• Ask your current customers? - 1
• Why do you buy from us?
• What did you do before you used us?
• What made you change?
• What one thing would you improve?

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• Ask your current customers? - 2
• What magazines do you read?
• What exhibitions do you attend?
• What trade associations do you belong to?
• Could you recommend me to a company you might
  benefit from our product?

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• Exercise 1
• Developing a profile of your ideal customer

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• What is a customer worth to me

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• What is a customer worth to me?
• First order value?
• Annual order value?
• How many years?
• Gross profit margin?
• Lifetime worth?

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• The magic formula
• Lifetime worth
• Gross Profit x (annual value x number of years)

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• How much should \ can I spend ?
• How much did you spend on your last marketing
  campaign?
• How many leads did it produce?
• What is the cost per lead?
• How many of these leads did you convert?
• What is the cost per converted lead?
• That is YOUR cost to acquire a customer.

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• Exercise 2
• Reaching your customers in a cost effective manner

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• Two ways
• to communicate

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• Two way
• communication

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• Reaching your customers
• The best methods . . .
• Mail acquire customers
• Email up selling current customers

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• Direct mail
• Selecting list is all important
• Your own list vs buying a list
• Relevance
• Quality vs cost
• Selection criteria SIC codes, geography, mail
  responsive, named person, media, test

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• Ensuring maximum response
• Make it easy
• Obvious
• Free
• Capture relevant information

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• 13 proven ways to increase response
• Increase response rate by - Single sheet stand
  alone leaflet, no covering letter, personalised,
  stamps, handwritten, pre-print response details,
  make response easy, offer an incentive.
• Reduce your costs - mailsort, code response,
  examine print and enclosure costs

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• The internet and e-mail
• Advantages
• Cuts costs
• Short time scales
• Drives web site traffic
• Personalised
• High click through
• Real time

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• What should I expect . . .
• 2 Hard bounce
• quality of your data
• 3 Soft bounce
• your reputation with ISP
• 33 Open rate
• your first six lines
• 9 Click through rate
• ensure personalised content
• 10 Conversion rate
• pre-populate, incentivised

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• HTML or text?
• Use notepad not word to create
• 70/80 character per line
• Use hard returns
• Copy and paste into email
• 10 of B2B users use Lotus notes
• What email programme used
• Outlook 2007
• Send both

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• Building an email list
• Get permission
• The legal position is opt-in
• Business vs partnership individual
• Actively collect
• All marketing material
• Web site
• Forward to a friend
• Purchase?

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• Good practise
• Dont conceal who you are
• Have an un-subscribe
• Use a 3rd party broadcaster
• Treat people with respect
• Have a clear privacy policy

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• If buying email lists 7 things to know
• Has it been legally gathered?
• Ask to see registration form used?
• Can they provide references?
• What segmentation variables can be used?
• What is minimum purchase \ test?
• How old is data?
• Who broadcasts message?

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• Summary - 10 things to know
• Do the maths what is cost per action?
• Develop a test plan
• Work on the subject line
• Use first 6 lines
• Consider text only to optimise
• Segment audience
• Personalise message
• Have many response channels not just web
• Get contact details at a minimum
• Remember the forward to a colleague referral

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Lunch
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• Other methods to reach customers?

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• Inserts - reaching your customers
• Typical response 0.5
• Prospect has your literature in their hand
• Choosing the right media
• Ask current customers what they read
• Cost of advertising vs inserts plus print cost
• Code responses and test . . .

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• Reaching your customers

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• Door to door - reaching your customers
• Lower response than inserts, lower cost also.
• Depends on your product - most suited to
  localised consumer services and retail
• Choosing type of drop - Post Office, local
  newspapers, solus drops.

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• Newspapers and trade magazines
• Choosing your media Benns and BRAD
• Position right hand page, top of page, page 3 5,
  7 etc., TV listings, link to content of paper
• Make response easy Large telephone number, use a
  coupon, the squint test

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• Reaching your customers
• Telemarketing - The rules of telesales (probe,
  confirm, match), getting through the switchboard,
  timings of calls, be systematic, get referrals,
  ask for business and then shut up
• Exhibitions - select the right event, layout and
  position of stand, 3 seconds , opening qualifier,
  use a physical stopper, headlines
• P.R. - can cost very little, but can achieve big
  results, find hook to hang your story on.

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• Reaching your customers
• Telemarketing - The rules of telesales (probe,
  confirm, match), getting through the switchboard,
  timings of calls, be systematic, get referrals,
  ask for business and then shut up
• Exhibitions - select the right event, layout and
  position of stand, 3 seconds , opening qualifier,
  use a physical stopper, headlines

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• Two ways of selling - see and hear
• We will examine this afternoon
• Content - what you say
• Form - how you say it
• We examined in the morning session
• Method - how you reach customers
• Techniques - to increase response

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You have 3 seconds
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Headline!
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Understanding Self
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Understanding Others
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• A.I.D.A.

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• A.I.D.A.
• Attention
• Interest
• Desire
• Action

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• Exercise 4
• Writing headlines that sell

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• Writing headlines 6 rules
• 3 seconds to capture attention
• Benefits
• 10 words
• Clarity
• Which means that . . .
• test

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• The decision making process
• Interest arousal
• Requirement appreciated
• Knowledge of product extended
• Suitability appreciated
• Desire to buy
• Consider price
• Value appreciated
• Ill buy it!

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• Writing copy
• Benefits
• You ability
• Sub headlines
• Tell the story
• Squint test
• Arouse interest
• Create desire

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Designing a direct mail leaflet

• List number benefits
• Top of the page is prime - dont waste it
• Dont insult or frighten the reader
• Get the reader to do something ( tick, quiz)
• Paint word pictures
• Be specific
• Use power words

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• Exercise 5
• The principles of developing a sales leaflet

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Remember the 3W Formula

• WHAT am I selling?
• be clear express benefits
• WHO am I selling to
• know your customers
• WHY should they buy?
• benefits motivators

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• Summary
• 3 seconds to capture attention of reader
• Dominant headline - Benefits, 10 words, clarity,
  which means that, you ability, test
• Body Copy Sub headlines tell the story
• AIDA
• Response - Easy, obvious, free, capture relevant
  info., perforated, business reply
• TEST