Five Tricks or Treats Smaller Retailers Use

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Five Tricks (or Treats) Smaller Retailers Use

• To Maximize Customer Relationships

October 11, 2006
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Wisdom
Creative
Business
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Five Tricks (or Treats!)

• Do More With Less
• Stop Firing Your Customers
• eMarketing
• Find Your Mavins
• Tap the Power of Public Relations

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Trick 1 Do More with Less
Front Cover
Back Cover
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Trick 2 Stop Firing Customers

• Issue
• Fixed Mail Quantities
• Budget-Constrained
• NOT Customer-Focused

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Trick 2 Stop Firing Customers
Add 100K New Customers to Mail File

• Implications
• Infrequent Communication
• Profitable Customers Dropped
• Best Customers no Advance Notice

1 Million Customers
Youre Fired!
Bottom 100K
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Trick 2 Stop Firing Customers
Business Case
Sales Margin
Incr. Quantity
Response Rate





Avg. Ticket
Sales
GM
GMs





500K
25
625K
40
250K
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Return on Investment (ROI)
-
/

(GMs
Incr. Cost)
Incr. Cost)
ROI
Very Compelling!
-
/

(250K
150K
150)
67
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Trick 2 Stop Firing Customers

• Options
• Accept the Status Quo
• Cut Lower ROI Programs
• Test and Measure

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Trick 3 - eMarketing

• Why Customers Like It
• Does not clutter the house like Direct Mail
• Provides element of control
• More stimulating, hits more senses

• Why Retailers Like It
• Its Efficient! (This means inexpensive)
• It works

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Trick 3 - eMarketing

• .com

Store
Catalogue
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Trick 3 - eMarketing

• Interactive
• Click and it takes you to bluefly.com website

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Trick 3 - eMarketing

• Allows for inspiration
• How-tos
• Electronic capture of sweepstakes entry

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Trick 3 - eMarketing

• Other Thoughts on eMail
• eAcquisition
• Borrow Option
• Channel Choice vs. Layering Communications

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Trick 4 Find Your Mavins

• The Critical Few
• Connectors know lots of people
• Mavins have the information
• Salesmen persuade others

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Trick 4 - Find Your Mavins

• Brands and Celebrities as Mavins

August 24, 2006 KOHL'S AND VERA WANG ANNOUNCE
EXCLUSIVE NEW COLLECTION Introducing Very Vera
by Vera Wang
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Trick 4 - Find Your Mavins

• Communities of Interest as Mavins
• Teachers
• Girl Scouts
• Boy Scouts
• Moms Clubs
• Church Groups

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Trick 4 - Find Your Mavins
Emerging Platforms for Mavins

• Online Community allowing you to connect and
  share interests with friends and friends of
  friends

YouTube is a place for people to engage in new
ways with video by sharing, commenting on, and
viewing videos
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Trick 5 Public Relations

• PR Power
• Generate Awareness
• Influence Public Opinion
• Drive Traffic to Retail
• Create Demand for a Product Before it hits the
  shelf

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Trick 5 Public Relations

• Why Retailers Love PR
• Ability to start a trend
• Ties to current news, holiday
• Use star power or credible experts
• Links charity components

Payoff is third-party credibility and advocacy,
reinforcing the brand
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Trick 5 Public Relations
Good and bad things Martha Stewart Living

• Tinsel Trading
• Toho Shoji
• Nightmare Factory
• Kates Paperie

• Always Something Brilliant
• Columbian Home Products
• Michaels
• Dylans Candy Bar

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Trick 5 Public Relations
                                                
                                                 
More From The Plain Dealer     Subscribe To The
Plain Dealer Catching a flight into history
Obscure museums work to preserve aviation
artifacts Saturday, October 07, 2006 Daniel
Yee Associated Press Atlanta - A converted
maintenance room of Delta Air Lines Inc.'s very
first hangar holds some of the airline's
treasures - one of the company's original
passenger tickets, old photos from the company's
crop-dusting days and decades of flight attendant
uniforms. Much larger artifacts - planes once
flown by the company - are displayed inside the
hangar, from a propeller plane of the era when
carrying mail was more profitable than flying
passengers to a modern Boeing 767-200, the 30
million jet that airline employees bought for the
company in 1982. Little known to the public, the
Delta Heritage Museum preserves the company's
77-year history in two of the airline's oldest
hangars. Within a converted room in one hangar,
an archivist collects galley china, saves old
uniforms from retirees and even scouts out rare
items on eBay.
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Summary Themes

• Listen to the Customer
• Get the Facts
• Balance Business Understanding with Superior
  Creative